The asset described below is to be depreciated using sum-of-years-digits depreciation. Determine the amount of depreciation in year four. B = asset cost basis = $15,000 %3! N =6 years S = salvage value $3,000 %3D Choose an answer from one of the letters below: O $1854 O $1,666 O $1714 O $3,200 $2023

The asset described below is to be depreciated using sum-of-years-digits depreciation. Determine the amount of depreciation in year four. B = asset cost basis = $15,000 %3! N =6 years S = salvage value $3,000 %3D Choose an answer from one of the letters below: O $1854 O $1,666 O $1714 O $3,200 $2023

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Calculate the payback period
Give the calculations regarding the sinking fund method of depreciation with an interest rate of 12% compounded annually. Find the book value until 10th year and create a table regarding to depreciation. FC= 100,000 SV= 20, 000 n= 8years i=12%
2- The marginal cost for year t is computed as SV, - SV-1+SV¢ • i+ Cost, where SV denotes salvage value. a) TRUE b) FALSE 3- Replacement rule implies replacing the existing asset when the marginal cost of the existing asset is more than the marginal cost of the new asset. a) TRUE b) FALSE 4- Depreciation recapture occurs when the market value of an asset is greater than the book value. a) TRUE b) FALSE 5- Year 1 SV O&M 15,000 1000 12,000 1500 9.000 2 3 2000 The table above lists salve value (SV) and operating and mainteriance (O&M) cost of an asset through 3 years with the initial cost of $20,000. Given MARR is 10%, which of the statements is correct (choose the closest answer)? a) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $6,500 b) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $7,048 c) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $7,048 d) The marginal cost at…
Consider the following data for 2019 from an after tax cash flow analysis. What is the after tax cash flow for 2019? Before-Tax-and-Loan Cash Flow = $24000 Loan Principal Payment = $3139 Loan Interest Payment = $4280 Depreciation Deduction = $11530 Taxable Income = $6798 Taxes Due = $1586 O $14995 O $9783 O $19275 O $20861
1b. A machine was purchased 4 years ago for $50,000. The depreciation amount each year was $10,000. The firm that owns the machine no longer has a need for it, but a buyer is now willing to pay $60,000 for it because machines of this type are no longer available. What will be the gain (or loss) on this transaction? Edit Format Table