tiger Woods makes the following construction related expenditures:450,000 on January 1 2021300,000 on Oct 1 2021600,000 on Dec 1 2021500,000 on March 1, 2022 and construction ends June 30, 2022He has a 600,000 construction loan at 6 percent. In addition, they have a 1,000,000 loan at 4 percent and a 3,000,000loan at 5 percent.How much depreciation expense does he recognize in 2022 if the company uses straight-line depreciation, beginsdepreciating as soon as construction is finished, and the building has 30 year useful life and a residual value of 200,000?

Answered: Image /qna-images/answer/ceb1f928-e9fa-43ad-85a4-e7f1b0e8cd9b.jpg

tiger Woods makes the following construction related expenditures: 450,000 on January 1 2021 300,000 on Oct 1 2021 600,000 on Dec 1 2021 500,000 on March 1, 2022 and construction ends June 30, 2022 He has a 600,000 construction loan at 6 percent. In addition, they have a 1,000,000 Iloan at 4 percent and a 3,000,000 loan at 5 percent. How much depreciation expense does he recognize in 2022 if the company uses straight-line depreciation, begins depreciating as soon as construction is finished, and the building has 30 year useful life and a residual value of 200,000?

tiger Woods makes the following construction related expenditures: 450,000 on January 1 2021 300,000 on Oct 1 2021 600,000 on Dec 1 2021 500,000 on March 1, 2022 and construction ends June 30, 2022 He has a 600,000 construction loan at 6 percent. In addition, they have a 1,000,000 Iloan at 4 percent and a 3,000,000 loan at 5 percent. How much depreciation expense does he recognize in 2022 if the company uses straight-line depreciation, begins depreciating as soon as construction is finished, and the building has 30 year useful life and a residual value of 200,000?

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

am. 71.
Consider an asset that costs $635,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $105,000. If the relevant tax rate is 22 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Aftertax salvage value I.
Full details solution with explanation.
Question. Tradewinds Construction Company had 4 dump trucks, 2 excavators, and other construction machinery worth $950,000 on January 1, 2020. During the year 2020, Seabreeze Construction spent $120,000 on two new trucks. The market value of all of the company's vehicles and construction machinery was $1,020,000 on December 31, 2020. 1) In 2020, what was Seabreeze's gross investment? 2) What was the depreciation amount in 2020? 3) In 2020, what was the net investment?
You purchase a two acre office park for $5,000,000. Calculate the depreciation that you can deduct when estimating your annual tax liability if 75% of purchase price is allocated to depreciable real property. What if the property was an apartment complex?
Bramble Corp. is purchasing new equipment with a cash cost of $312000 for an assembly line. The manufacturer has offered to accept $67900 payment at the end of each of the next six years. How much interest will Bramble Corp. pay over the term of the loan? O $95400. O $312000. O $67900. O $407400.
Hh1.
am. 120.
6.1 A project requires the purchase of new equipment at a cost of $12,000, which will be depreciated over the life of the asset. A further $8000 spent on transport and installation will be added to the purchase price of the equipment for depreciation purposes, and $1000 will be spent on advertising and other operating expenditure to get the project up and running. Excluding depreciation, what is the amount that will be claimed as a tax deduction in Year 1? a. $21,000 b. $1,000 c. $20,000 d. $9,000
3. A proposed cost-saving device has an installed cost of $450,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $30,000, the marginal tax rate is 35 percent, and the project discount rate is 12 percent. The device has an estimated Year 5 salvage value of $75,000. What level of per year pretax cost savings do we require for this project to be profitable?
Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $13.5 million, of which 65% has been depreciated. The used equipment can be sold today for $5.4 million, and its tax rate is 25%. What is the equipment's after-tax net salvage value? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.
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 $6,160,000 and will be sold for $1,360,000 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. Note: 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