Required information Complete the last four columns of the table below using an effective tax rate of 40% for an asset that has a first cost of $20,000, no salvage value, and a 3-year recovery period. Use MACRS depreciation. Estimates, $ Estimates, $ OE Estimates, $ Estimates, $ Estimates, $ Estimates, $ Estimates, $ Year GI TI Тахes CFAT -20 -20 10 -2 -4 20 3 16 -3 4 9. -5

Required information Complete the last four columns of the table below using an effective tax rate of 40% for an asset that has a first cost of $20,000, no salvage value, and a 3-year recovery period. Use MACRS depreciation. Estimates, $ Estimates, $ OE Estimates, $ Estimates, $ Estimates, $ Estimates, $ Estimates, $ Year GI TI Тахes CFAT -20 -20 10 -2 -4 20 3 16 -3 4 9. -5

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterA: Methods Of Depreciation

Section: Chapter Questions

Problem 4P: Use the information in Problem A-1 to solve this problem. Assume that the van is five-year property...

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Using (a) straight-line depreciation and (b) MACRS depreciation, complete the last four columns of the table below using an effective tax rate of 40 percent on an asset that has a first cost of $20,000 and a 3-year recovery period with no salvage value. Both cash flows are in units of $1000.
Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Recovery period (years) 5 Elapsed time since purchase (years) 2 Asset A Installed cost $839,000 The remaining book value is $ (Round to the nearest dollar.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 1 2 3 4 5 6 7 8 3 years 33% 45% 15% 7% 9 10 11 Totals Percentage by recovery year* 5 years 7 years 20% 14% 32% 19% 12% 12% 5% 25% 18% 12% 9% 8% 7% 6% 6% 6% 4% 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year 10 years 10% 18%…
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Complete the last four columns of the table below using an effective tax rate of 40% for an asset that has a first cost of $20,000, no salvage value, and a 3-year recovery period. Use straight line depreciation. (All cash flows are in $1000 units.) Estimates, $ Year GI OE D TI Taxes CFAT -20 -20 - 1 8 2 15 3 12 4 10 -5
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Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used E Recovery period (years) Elapsed time since purchase (years) Asset Installed cost A $987,000 2 The remaining book value is $ . (Round to the nearest dollar.) Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* 5 years Recovery year 3 years 7 years 10 years 1 33% 20% 14% 10% 45% 32% 25% 18% 15% 19% 18% 14% 7% 12% 12% 12% 12% 9% 9% 5% 9% 8% 9% 7% 4% 6% 6% 10 6% 11 4% Totals 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%)…
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Description You are to create a year-by-year depreciation schedule for an asset that has a cost basis (B) of $950,000 and estimated salvage value (SV 10) of $80,000 after 10 years. For the straight-line and declining balance methods, use a depreciable life (N) of 10 years. For MACRS, use a recovery period (N) of 7-yrs. ΕΟΥ, Κ 0 1 2 3 st 4 5 6 7 8 'a 9 10 Straight-Line BVk $950,000 Declining Balance dk BVk $950,000 dk MACRS BVk 950,000
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