Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being usedRecoveryperiod(years)5Elapsed timesince purchase(years)2AssetAInstalled cost$839,000The remaining book value is $(Round to the nearest dollar.)Data table(Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)Rounded Depreciation Percentages by Recovery Year Using MACRS forFirst Four Property ClassesRecovery year123456783 years33%45%15%7%91011TotalsPercentage by recovery year*5 years7 years20%14%32%19%12%12%5%25%18%12%9%8%7%6%6%6%4%100%100%100%100%*These percentages have been rounded to the nearest whole percent to simplify calculations whileretaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actualunrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year10 years10%18%14%12%9%9%9%4%

Salvage value net of tax is that amount which is received by the investor from selling the assets at…

Answered: Book value Find the book value for the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Net present value method The following data are accumulated by Geddes Company in evaluating the purchase of $150,000 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $40,000 $77,500 Year 2 30,000 67,500 Year 3 16,500 54,000 Year 4 2,000 39,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Assuming that the desired rate of return is 15%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value $ Would management be likely to look with favor on the proposal? , the net present value indicates that the return on the proposal is than the minimum desired rate of return of 15%.
The formula for double-declining-balance depreciation on an asset with a five-year life in its second year is Book Value × 40% = Depreciation Expense. (Book Value – Residual Value) × 40% = Depreciation Expense. (Book Value – Residual Value) × 20% = Depreciation Expense. (Original Cost × 30%) – Residual Value = Depreciation Expense.
Modified Accelerated Cost Recovery System An example of a depreciation schedule under the Modified Accelerated Cost Recovery System of depreciation is shown. The Internal Revenue Service (IRS) classifies various assets according to useful life and sets depreciation rates for each year of the asset’s life. This asset has a five year life. The MACRS rates are shown in the schedule. This example is for an asset with a cost of $40,000 and a salvage value of $4,000. MODIFIED ACCELERATED COST RECOVERY SYSTEM Year Cost × Rate = DepreciationExpense AccumulatedDepreciation(End of Year) Book Value(End of Year) 1 $40,000 20.00% $8,000 $8,000 $32,000 2 40,000 32.00% 12,800 20,800 19,200 3 40,000 19.20% 7,680 28,480 11,520 4 40,000 11.52% 4,608 33,088 6,912 5 40,000 11.52% 4,608 37,696 2,304 6 40,000 5.76% 2,304 40,000 0 Prepare a depreciation schedule showing the depreciation…
Find the depreciation for the third year using MACRS cost-recovery rates for the property placed in service at midyear. The property is a 3-year property and was purchased for $98,452. Click the icon to view a table of MACRS rates. X The depreciation is $. (Round to the nearest cent as needed.) MACRS Table Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 3-Year 33.33% 44.45 14.81 7.41 Depreciation rate for recovery perioa 5-Year 7-Year 10-Year 15-Year 20.00% 10.00% 5.00% 14.29% 32.00 19.20 11.52 11.52 5.76 24.49 17.49 12.49 8.93 8.92 8.93 4.46 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 20-Year 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461
What is the amount of double declining balance depreciation for year 4 if the cost of an asset is $75,000 the useful life is 5 years and the salvage vague is $4000
Using the following information, create a Double declining, depreciation schedule. Van cost:34,440 Residual value: 1,722 Useful Life: 3 Years Example: Straight-line depreciation Schedule. Years Value at the beginning of the year Depreciation End of year Value 1 34,440 10,906 23,535 2 23,535 10,906 12,628 3 12,628 10,906 1,722
Use the following information to answer the question:Cost of car: $26,000Residual value: $6,000Life: 5 yearsWith the information given, determine the depreciation expense for the first year using the straight-line method. A. $6,000 B. $5,200 C. $4,000 D. $4,400
I have included the question and answer I just need to know how to get the answer. Chart attached. Find the depreciation for the indicated year using MACRS cost-recovery rates for the properties placed in service at midyear. Round dollar amounts to the nearest cent. Property Class: 3-year Depreciation year: 3 Cost of property: $97,700 $14,469.37 - answer
Answer it correctly and typed answer please. I ll rate.
Assets = A Liabilities = L Stockholders' Equity = SE On March 1st2018,Bulldozer Inc purchases a forklift for $65,000. The expected salvage value is $10,000 and the forklift is expected to have a useful life of 10 years. Calculate the first years depreciation expense as of 12/31/2018, utilizing the straight line method, and book the JE of the depreciation below. write a journal entry.
Answer entire question please
Net present value method The following data are accumulated by Geddes Company in evaluating the purchase of $130,000 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $46,000 $78,500 Year 2 29,000 61,500 Year 3 11,000 43,500 Year 4 5,000 37,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Assuming that the desired rate of return is 10%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value $ Would management be likely to look with favor on the proposal? Yes , the net present value indicates that the return on the proposal is greater than the minimum desired rate of return of 10%.

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