Required For a typical $180,000 investment in equipment with a five-year life and no salvage value, determine the present value of the advantage resulting from the use of double-declining balance depreciation as opposed to straight-line depreciation. Assume an income tax rate of 21% and a discount rate of 20%. Also assume that there will be a switch from double-declining balance to straight-line depreciation in the fourth year. Note: Round your answers below to the nearest whole dollar. Present value of double-declining balance tax shield $ Present value of straight-line tax shield Advantage of double-declining balance depreciation $ 5,040 x 7,631 X x

Required For a typical $180,000 investment in equipment with a five-year life and no salvage value, determine the present value of the advantage resulting from the use of double-declining balance depreciation as opposed to straight-line depreciation. Assume an income tax rate of 21% and a discount rate of 20%. Also assume that there will be a switch from double-declining balance to straight-line depreciation in the fourth year. Note: Round your answers below to the nearest whole dollar. Present value of double-declining balance tax shield $ Present value of straight-line tax shield Advantage of double-declining balance depreciation $ 5,040 x 7,631 X x

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

D nctions Question 10 Use the diagram below to find each of the following: sine of point a • cose of point b • tane of point c d e
what are the solutions for questions 4 & 5?
Wrong Answer
can you explain why the answer for the third part is option number 2 from the selection of answers
Could you please answer question 4 and 5?
Answer each of the following independent question: a and b
C B A Question 2 Listen What is tane for the given triangle? 13 53 12 25 55 13 12 13 e
Zina Manufacturing Company started and completed Job 501 in December with the following Job Cost Sheet and transferred it to the warehouse. Direct Materials Date Dec 17 Dec 30 Total Direct Labor Amount Date Amount $2,000 Dec 20 $4,000 8,000 Dec 30 3,800 Total Job Cost Sheet - Job No. 501 Total Cost The journal entry to record the transaction is A) WIP Inventory FG Inventory B) Cost of Goods Sold WIP Inventory C) FG Inventory WIP Inventory D) FG Inventory WIP Inventory Debit Credit 35,800 17,800 17,800 Manufacturing Overhead Date Amount Dec 24 $10,000 Dec 30 8,000 Total 35,800 35,800 17,800 17,800 35,800
Classify each of the cost items as one of the business functions of the value chain in “Payment of booth registration fee at a medical conference to promote new products to physicians.”
hrl.3 answer must be in proper format or i will give down vote
Question 4 Listen Which of the following points are on the unit circle? Select all that apply. A (--) B (33.3) C 12 (1/13. 31/3)