DeltaTech uses the straight-line method. Assets purchased between the 1st and 15th of the month are depreciated for the entire month; assets purchased after the 15th of the month are treated as though they were acquired the following month. On September 18, 20X3, DeltaTech purchases a scanner for $12,000, which it expects to last for 6 years. DeltaTech expects the scanner to have a residual value of $3,000. What is the 20X4 depreciation expense for the scanner?
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What is the 20X4
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- DeltaTech uses the straight-line method. Assets purchased between the 1st and 15th of the month are depreciated for the entire month; assets purchased after the 15th of the month are treated as though they were acquired the following month. On September 18, 20X3, DeltaTech purchases a scanner for $12,000, which it expects to last for 6 years. DeltaTech expects the scanner to have a residual value of $3,000. What is the 20X4 depreciation expense for the scanner? HelpDeltaTech uses the straight-line method. Assets purchased between the 1st and 15th of the month are depreciated for the entire month; assets purchased after the 15th of the month are treated as though they were acquired the following month. On September 18, 20X3, DeltaTech purchases a scanner for $12,000, which it expects to last for 6 years. DeltaTech expects the scanner to have a residual value of $3,000. What is the 20X4 depreciation expense for the scanner? Need helpAn asset with a first cost of $7,000 is depreciated using the Modified Accelerated Cost recovery System (MACRS) over a 5-year period. The cash flow before taxes (CFBT) is estimated at $10,000 for the first 4 years and $5000 thereafter as long as the asset is retained. The effective tax rate is 40%, and the money is worth 8% per year. In present worth dollars, how much of the cash flow generated by the asset over its recovery period is lost to taxes?
- Shado, Incorporated, is considering an investment of $446, 000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $284, 900 and $89, 200, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 4 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $66,000 in nominal terms at that time. The one - time net working capital investment of $20, 500 is required immediately and will be recovered at the end of the project. The corporate tax rate is 21 percent. What is the project's total nominal cash flow from assets for each year? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)Shado, Incorporated, is considering an investment of $442,000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $281,300 and $88,400, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 4 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $62,000 in nominal terms at that time. The one-time net working capital investment of $18,500 is required immediately and will be recovered at the end of the project. The corporate tax rate is 22 percent. What is the project’s total nominal cash flow from assets for each year? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Year 0$-460,500selected answer correctYear 1$167,182selected…On January 1, 2021, Famous Inc. acquired a piece of equipment for a list price of $340,000. It paid $50,000 cash and issued a 3-year note payable for the remainder. The note requires annual payments of a 3% interest every December 31. Famous Ic. also paid $16,000 to install the equipment, and $6,000 to test it. At the end of the testing, the company was able to obtain an output of good quality and sold it for $2,300. Famous Inc.'s incremental borrowing rate is 5%. The equipment's useful life is $80,000 at the end of its 10-year useful life. It was ready for use on March 31, 2021, but the company started using it on April 30th, 2021. Famous is a public company and uses the straight-line method to depreciate its equipment. Required- 1- Prepare the journal entry to record the acquisition of the equipment. 2- Prepare the required adjusting entries on December 31, 2021.
- Perkins, Inc., is considering an investment of $379,000 in an asset with an economic life of 5 years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $259,000 and $84,000, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 4 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $59,000 in nominal terms at that time. The one-time net working capital investment of $17,000 is required immediately and will be recovered at the end of the project. The tax rate is 24 percent. What is the project’s total nominal cash flow from assets for each year? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole dollar, e.g., 32.)Perkins, Inc., is considering an investment of $383,000 in an asset with an economic life of 5 years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $263,000 and $88,000, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 4 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $63,000 in nominal terms at that time. The one-time net working capital investment of $19,000 is required immediately and will be recovered at the end of the project. The tax rate is 23 percent. What is the project’s total nominal cash flow from assets for each year? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole dollar, e.g., 32.) Cash Flow Year 0 $ -402,000 Year 1 Year 2 Year 3…Perkins, Inc., is considering an investment of $378,000 in an asset with an economic life of 5 years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $258,000 and $83,000, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 2 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $58,000 in nominal terms at that time. The one-time net working capital investment of $16,500 is required immediately and will be recovered at the end of the project. The tax rate is 23 percent. What is the project's total nominal cash flow from assets for each year? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole dollar, e.g., 32.) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 $ $ $ 6A6A $ $ $ Cash Flow -394,500 149,470 152,165…
- Shado, Incorporated, is considering an investment of $451,000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $289,400 and $90,200, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 5 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $71,000 in nominal terms at that time. The one-time net working capital investment of $23,000 is required immediately and will be recovered at the end of the project. The corporate tax rate is 21 percent. What is the project’s total nominal cash flow from assets for each year?On January 1, the Matthews Band pays $69,000 for sound equipment. The band estimates it will use this equipment for five years and perform 200 concerts. It estimates that after five years it can sell the equipment for $2,000. During the first year, the band performs 45 concerts. Compute the first-year depreciation using the straight-line method. Straight-Line DepreciationChoose Numerator:/Choose Denominator:=Annual Depreciation ExpenseBeginning book value/=Depreciation expense/=The Electric Company buys machinery for $500,000 and gives a promissory note to pay dated 2 years from the purchase date. Interest at 10% and principal are to be repaid at maturity. The life of the asset is also estimated to be two years with no salvage and straight line depreciation is used. We can say that on the purchase date: The liability will be offset from the asset but the total asset amount will increase by the amount of the discount amortization each period. The liability will be offset from the asset until paid so initially the transaction will have no effect on total assets The amount shown for the asset on the balance sheet will be the same as the amount shown for the liability The amount shown for the asset on the balance sheet will differ than the amount shown for the liability None of the other alternatives are correct
