Sheridan Company is contemplating the replacement of an old machine with a new one. The following information has been gathered:PriceAccumulatedDepreciationRemaining usefullifeUseful life:Annual operatingcostsOld Machine$2400007200010 years$192000New Machine$480000-0-10 years$144000If the old machine is replaced, it can be sold for $19200. The company uses straight-line depreciation with a zero salvage value for allof its assets.Which of the following amounts is relevant to the replacement decision?

Name: Sheridan Company is contemplating the replacement of an old machine w
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Description: Sheridan Company is contemplating the replacement of an old machine with a new one. The following information has been gathered:PriceAccumulatedDepreciationRemaining usefullifeUseful life:Annual operatingcostsOld Machine$2400007200010 years$192000Ne

A company can replace assets in a way that maximizes value and is in line with its strategic…

Answered: Price Accumulated Depreciation…

Business

Accounting

Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs Old Machine $240000 72000 10 years -0- a $192000 New Machine $480000 -0- -0- 10 years $144000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Machinery on 01/1/23 = $ 100000 Salvage value @ 10 years = $ 10000 Book value after 6 years using Straight method depreciation.
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An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,110,000 and will be sold for $1,310,000 at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? Refer to Table 8.3. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Aftertax salvage value es ( Prev 7 of 10 Next >
initial book value $ n residual value $ years years 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12 $ annual depreciation cumulative depreciation BV 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 3,000,000 9 $ 10 $ 12 11 $ 12 $ 16.67% annual depreciation cumulative depreciation BV 500,000.00 $ 416,666.67 $ 347,222.22 $ 289,351.85 $ 241,126.54 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 2,750,000 500,000 $ 2,500,000 750,000 $ 2,250,000 1,000,000 $ 2,000,000 1,250,000 $ 1,750,000 1,500,000 1,250,000 1,000,000 750,000 500,000 250,000 1,500,000 $ 1,750,000 $ 2,000,000 $ 2,250,000 $ 2,500,000 $ 2,750,000 $ 3,000,000 $ 200,938.79 $ 167,448.99 $ 139,540.82 $ 116,284.02 $ 96,903.35 $ 80,752.79 $ 67,293.99 $ - 500,000.00 $2,500,000.00 916,666.67 $2,083,333.33 1,263,888.89 $1,736,111.11 1,553,240.74 $1,446,759.26 1,794,367.28 $ 1,205,632.72 1,995,306.07 $1,004,693.93 2,162,755.06 $ 837,244.94 2,302,295.88 $ 697,704.12…
9. Compute for the depreciation in the first year using double declining method. a. 40,000 c. 72,000 b. 36,000 d. 80,000 10. How much is the book value of the equipment as of end of second year using output method of depreciation? a. 360,000 c. 301,500 b. 341,500 d. 230,000
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