iMore Info(Click on the icon located on the top-right corner of the data table below in order to copy its contents into aspreadsheet.)Rounded Depreciation Percentages by Recovery Year Using MACRS forFirst Four Property ClassesRecovery year1819 GWN25673 years33%91011Totals45%15%7%Percentage by recovery year*5 years20%32%19%12%12%5%7 years14%25%18%12%9%9%8%7%6%6%6%4%100%100%100%100%*These percentages have been rounded to the nearest whole percent to simplify calculations whileretaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actualunrounded percentages or directly apply double-declining balance (200%) depreciation using the half-yearconvention.10 years10%18%14%9%4%12%9%n***********X

INTRODUCTION: Depreciation is an accounting technique that distributes an asset's cost over its…

Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 1 2 234 LO CON8 5 6 7 3 years 33% 45% 15% 7% 9 10 11 Totals Percentage by recovery year* 5 years 20% 32% 19% 12% 12% 5% 7 years 14% 25% 18% 12% 9% 9% 9% 4% 10 years 10% 18% 14% 12% 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 convention. 9% 8% 0

Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 1 2 234 LO CON8 5 6 7 3 years 33% 45% 15% 7% 9 10 11 Totals Percentage by recovery year* 5 years 20% 32% 19% 12% 12% 5% 7 years 14% 25% 18% 12% 9% 9% 9% 4% 10 years 10% 18% 14% 12% 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 convention. 9% 8% 0

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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A Cost 49, 300, # Computer System purchased by Jones Company Using the MACRS method Caleviate depreciation at the the accumulated 3. (Round all Dollar amounts. to A 35, 101.60 B 33, 345.54 C 40 780.9 و ما ان ها ,45 D 87 Abswer ky end of year newest Cent)
11- An equipment is bought for RO 17,500 with an estimated useful life of 4 years. The expected scrap value at the end of its useful life is RO 3,500. Required A. Calculate the WDV Rates. B. Prepare a Depreciation Schedule for 4 years Year Year Beginning End of the year Depreciation Expense (at Book Value Book Value (Written Down Value ) 60.85%)
Historical cost $ 270,000 Estimated useful life 6 years Salvage value $ 24,000 Estimated useful hours 12,000 hours 3,100 2019 1,100 2020 1,200 2021 Estimated hours per year: 2,800 2022 2,600 2023 1,200 2024 Required 1 Complete the depreciation schedule using the Units of Production Method. Page Adventure Park, Corp. ciation Schedule - Units of Production Depreciation Accumulated Depreciable Year Expense Depreciation Cost 12.31.19 12.31.20 12.31.21 12.31.22 12.31.23 12.32.24 2 Record depreciation expense for 2020. General Journal DR CR 3 What is the net book value of the equipment on 12.31.20? Historical cost (Accumulated depreciation) Net book value at 12.31.20 |24
Original Cost POST. ... Accumulated Depreciation for Previous Years DATE DESCRIPTION REF. DEBIT CREDIT ... Book Value, Beginning Year 4 1 20xx ... Salvage Value 2 2. ... Revised Remaining Depreciation Cost 3 ... 4 Revised Useful Life 15 YEARS Revised Depreciation, Total Revised Depreciation, Per Year ...
MACRS Depreciation Rate Year 0 20.00% OA. $19,104 OB. $11,520 OC. $1,896 OD. $9,480 Year 1 32.00% Year 2 19.20% Year 3 Year 4 11.52% 11.52% Year 5 5.76% A bakery invests $40,000 in a light delivery truck. This was depreciated using the five-year MACRS schedule shown above. If the company sold it immediately after the end of year 2 for $21,000, what would be the after-tax cash flow from the sale of this asset, given a tax rate of 20%?
The following tables shows a company's CAPEX forecast in each of the following years: Useful Life of New Assets (years) 15 15 15 Forecast Year 1234 5 Capex in $ Select one: O A. 2.5 OB. 0.5 O C. 1.0 O D. 1.5 52849 15 22 36 15 15 Assuming the use of the mid year convention, what would be the total depreciation expense in Year 1 of the forecast?
Modified Accelerated Cost Recovery System An example of a depreciation schedule under the Modified Accelerated Cost Recovery System of depreciation is shown. The Internal Revenue Service (IRS) classifies various assets according to useful life and sets depreciation rates for each year of the asset’s life. This asset has a five year life. The MACRS rates are shown in the schedule. This example is for an asset with a cost of $40,000 and a salvage value of $4,000. MODIFIED ACCELERATED COST RECOVERY SYSTEM Year Cost × Rate = DepreciationExpense AccumulatedDepreciation(End of Year) Book Value(End of Year) 1 $40,000 20.00% $8,000 $8,000 $32,000 2 40,000 32.00% 12,800 20,800 19,200 3 40,000 19.20% 7,680 28,480 11,520 4 40,000 11.52% 4,608 33,088 6,912 5 40,000 11.52% 4,608 37,696 2,304 6 40,000 5.76% 2,304 40,000 0 Prepare a depreciation schedule showing the depreciation…
QS 8-10 (Algo) Computing revised depreciation LO C2 On January 1, the Matthews Band pays $66,800 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $1,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years.
Major medical complexes and their service providers continue to move toward advanced health informatics - acquiring, managing, and using information to provide better healthcare. A new analyzer for researching and evaluating patient samples, and making informed recommendations in the treatment of complex blood cancers, is purchased for $290,000. It is estimated to have a useful life of 6 years and to be sold at the end of that time for $9,500. Part a Develop a table showing the depreciation and book value for each year using both the Excel® DDB worksheet function and the Excel® SLN worksheet function such that the depreciation switches from double declining balance to straight-line at the optimum time. Year Depreciation Book Value 1 $ $ $ $ $ 4 $ $ $ $ Carry all interim calculations to 5 decimal places and then round your final answers to 2 decimal places. The tolerance is +2.00. %24 %24 %24 %24 %24 %24 %24 %24 2. 3. 6.
8. EX.09.233 A machine costing $185,000 with a 5-year life and $20,000 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method. Year Depreciation Year 1 $4 Year 2 Year 3 Year 4 Year 5
FINANCIAL ACCOUNTING DEPRECIATION YEAR TWO EXAM CHAPTER 7-9 DEPRECIABLE BASE COST Student Name: SALVAGE VALUE TYPE NAME HERE USEFUL LIFE SRTAIGHT LINE RATE OPERATING HOURS TOTAL COMPUTE YEAR TWO I HAVE COMPUTED YEAR ONE FOR YOU CURRENT OPERATING HOURS DOUBLE DECLINING RATE Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of 5 years, or 14,000 operating hours, and a residual value of $10,000. Compute the depreciation for the first and second years of use by each of the following methods: DEPRECIATION EXPENSE UNIT OF PRODUCTION RATE straight-line units-of-output (1,200 hours first year; 2,250 hours second year) double-declining-balance YEAR ONE YEAR TWO DOUBLE DOUBLE STRAIGHT UNITS OF DECLINING STRAIGHT UNITS OF DECLINING LINE PRODUCTION BALANCE LINE PRODUCTION BALANCE
QS 8-10 (Algo) Computing revised depreciation LO C2 On January 1, the Matthews Band pays $68,600 for sound equipment. The band estimates it will use this equipment for five years and after five years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years.