For the first 2 years, calculate the depreciation expense for a $7,500 car. This is a nonluxury car. Use Table 17.4 and Table 17.5. **TABLE 17.5****Annual Recovery for MACRS**This table outlines the annual recovery percentages for different classes and durations under the Modified Accelerated Cost Recovery System (MACRS).| Recovery Year | 3-year class (200% D.B.) | 5-year class (200% D.B.) | 7-year class (200% D.B.) | 10-year class (200% D.B.) | 15-year class (150% D.B.) | 20-year class (150% D.B.) ||---------------|---------------------------|--------------------------|--------------------------|---------------------------|---------------------------|---------------------------|| 1 | 33.00 | 20.00 | 14.28 | 10.00 | 5.00 | 3.75 || 2 | 45.00 | 32.00 | 24.49 | 18.00 | 9.50 | 7.22 || 3 | 15.00* | 19.20 | 17.49 | 14.40 | 8.55 | 6.68 || 4 | 7.00 | 11.52* | 12.49 | 11.52 | 7.69 | 6.18 || 5 | | 11.52 | 8.93* | 9.22 | 6.93 | 5.71 || 6 | | 5.76 | 8.93 | 7.37 | 6.23 | 5.28 || 7 | | | 8.93 | 6.55* | 5.90* | 4.89 || 8 | | | 4.46 | 6.55 | 5.90 | 4.52 || 9 | | | | 6.55 | 5.90 | 4.46* || 10 | | | | 6.55 | 5.90 | 4.46 || 11

Data given: Cost of car=$ 7500 This is a nonluxury car Since automobile is non luxury, class…

Answered: For the first 2 years, calculate the…

For the first 2 years, calculate the depreciation expense for a $7,500 car. This is a nonluxury car. Use Table 17.4 and Table 17.5.

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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3. If a vehicle is bought for $40,000, has a scrap value of $4,000, and a reducing balance method with a depreciation rate of 25% is used, what is the book value of the vehicle at the end of year 4?
Montezuma Inc. purchases a delivery truck for $17,600. The truck has a salvage value of $4,000 and is expected to be driven for 8 years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $5,000. A. Determine the Depreciation Expense for the final three years of the asset's life. Round final answer to nearest whole dollar. $1 per year B. Prepare the journal entry for year four. If an amount box does not require an entry, leave it blank. Round final answer to nearest whole dollar. Accumulated Depreciation-Delivery Truck Cash Depreciation Expense Inventory Patent
A truck was purchased via a bank loan for a cost of $75,000 with an estimated life of 10 years and a residual value of $1,000.Prepare the journal entries to record the purchase of the vehicle andprepare a journal entry for 1 month of depreciation
The cleaning equipment purchased for $8,050.00 on June 3 has a 6-year life and a salvage value of $850.00. Calculate and record the straight-line cleaning equipment depreciation expense for the month.
A project requires $16,412 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
Montezuma Inc. purchases a delivery truck for $17,600. The truck has a salvage value of $4,000 and is expected to be driven for 8 years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $6,000. A. Determine the Depreciation Expense for the final three years of the asset’s life. Round final answer to nearest whole dollar. $ per year Feedback When revising deprecation schedules, the book value is used as the adjusting base to apply the new changes to when determine the revised yearly depreciation amount. B. Prepare the journal entry for year four. If an amount box does not require an entry, leave it blank. Round final answer to nearest whole dollar. Depreciation Expense Accumulated Depreciation-Delivery Truck
Answer it correctly and typed answer please. I ll rate.
Using the double declining balance method, Determine the yearly amortization of a car costing $45000 with a residual value of $4000. The car has an estimated life of 10 years and was purchased on July 1st. Include the yearly amortization of the asset for the 10 years.
3. Johnson Çompany bought a light general purpose truck for $20,000. Calculate the yearly depreciation using MACRS for the first three years.
2. A vehicle is bought for $35, 500 and has a life of 4 years. Using the reducing balance method (a 45% charge is to be made each year) calculate the book value of the vehicle at the end of every year. Year Depreciation (amount %) Book Value (Total Depreciation) 1234
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