Mr. Jhonny bought a car worth P900,000 last January 1, 2000, and intend to sell it for P300,000after its 10-year life.(c) If, on June 30, 2003, he decided to sell the old car at book value and buy a new carfor P1,000,00O, how much more money should jhonny borrow to buy the new car if heused the straight-line method in computing the depreciation every 6 months and madeit a point to deposit the said amount in a bank that offers 10 percent compoundedsemiannually? :

Annuity means a set of finite number of deposits/payments made at equal intervals of time for a…

Answered: Mr. Jhonny bought a car worth P900,000…

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

See similar textbooks

Similar questions

Right answer please
.
Caleb buys a new laptop and decides to depreciate the value of the laptop by the reducing balance method. Caleb's equation for the value of the laptop after n years is tn = 2530x 0.921^n-1 a) Calculate the original price of the laptop. b) What is the annual rate of depreciation from the laptop? c) Determine the value of the laptop after 3 years.
Soo Young purchased a new home for $510,000. At the same time, he sold a home for $495,000 in which he had a net equity of $304,000 after paying off the existing mortgage of $191,000. He used $224,300 that equity as a down payment on the new home while borrowing the rest with a new mortgage. He used $50,000 of the net equityto buy a new SUV. The closing costs on the sale of his old home were $29,700 and were subtracted from the net equity. What is the immediate impact of this transaction on Soo Young's net worth? a. His net worth decreases by $29,700. b. His net worth decreases by $94,700. c. His net worth increases by $15,000. d. His net worth increases by $20,300. e. His net worth remains the same.
Help me with this
Lina purchased a new car for use in her business during 2023. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2023 and 2024 (Lina doesn't want to take bonus depreciation for 2023 or 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) f. The vehicle cost $84,800, and is an SUV that weighs 6,500 pounds. Business use was 100 percent. Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92…
Wilson purchased a large piece of land on the edge of St Albert in 1989 for $150,000. He sold it on March 1, 2020 to a developer for $550,000. He received a down payment of $250,000 at the time of sale. The remaining $300,000 is to be paid to him in equal annual instalments of $100,000 beginning March 1, 2021. Calculate Wilson's maximum capital gains reserve in 2020. Show work in the space below.
Tamika Meer purchased a new car for use in her business during 2022 for $75,000. The auto was the only business asset she purchased during the year, and her business was very profitable. Calculate Tamika's maximum depreciation deductions for the automobile in 2022 and 2023 under the following scenarios:
In April of 2021, Bill purchased a new automobile for $90,000 that will be used 100% for business. If Bill did NOT have to consider the limitations for depreciation on automobiles, he would be able to deduct $____ in regular MACRS depreciation and bonus depreciation the first year. However, he will only be able to deduct $ ______due to the luxury limitations (considering allowable bonus depreciation).
Greg purchased a new Mercedes Benz for $68,000 on February 10, 2022. He used the car 90% for his business during the year. What maximum amount of depreciation is he eligible to claim on the car for 2022?
Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) d. The vehicle cost $92,000, and she used it 80 percent for business. She sold it on March 1 of year 2. X Answer is complete but not entirely correct. Depreciation deduction Year 2021 $ 14,560 X 2022 $ 13,120 X
On October 15, 2023, Jon purchased and placed in service a used car. The purchase price was $38,000. This was the only business use asset Jon acquired in 2023. He used the car 80% of the time for business and 20% for personal use. Jon used the regular MACRS method. Calculate the total maximum deduction Jon may take for 2023 with respect to the car, if he (a) elects out of bonus deprecation, and (b) if he takes bonus depreciation. (This differs from the question asked in the text.) If he elects out of bonus depreciation: If bonus is taken (because it was NOT elected out):

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS