uy office building for $3,600,000 on October 28. Land value represents 30% of the purchase price. Calculate MACRS depreciation for year 1, using the alternative 40-year life.
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Given: Buy office building for $3,600,000 on October 28. Land value represents 30% of the purchase price. Calculate MACRS
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- An asset with a purchase price of $501,013 falls in the 3-year MACRS asset class. The asset will be sold at the end of a three year project for $180,745. What is the book value of the asset at the end of the project? Round your answer to the nearest dollar. Year Depreciable Allowance 1 33% 2 45 3 15 4 7Initial Cost of $55,000, annual O&M costs of $800 increasing by $100 annually, salvage value of $6,000 at the end of it's 10 year useful life. Sheet 1 - Depreciation Calculate the depreciation for each year and book value using the appropriate MACRS recovery period for your vehicle.I am using MACRS for depreciation. Purchase date: September 1st Cost: $650,000 Salvage: $30,000 Life: 7 years What percent do I use to calculate depreciation for years 1-8?
- A) Calculate the SYD depreciation charges for year 2 for electro-optics equipment with B = 25,000SR, S = 4000SR, and an 8-year recovery period. B) An asset has a first cost of 100,000SR with 20,000SR salvage value after 5 years: Calculate the annual depreciation and compute the book value of the asset by the end of each year using straight line depreciation.If an asset has a first cost of $50,000 with a $10,000 estimated salvage valueafter 5 years, calculate the annual SL depreciation and plot the yearly bookvalue.If B = $400,000, n = 6 years, and S is estimated at 15% of B for a new pavement recycling machine, use the SYD method to determine (a) the book value after 3 years, and (b) the rate of depreciation and the depreciation amount in year 4.
- Perform a PW-based evaluation of the two alternatives below. The after-tax MARR is 10% per year, MACRS depreciation applies, and T.= 42%. The (GI – OE) estimate is made for the first three years; it is zero in year 4 when each asset is sold. %3D Alternative First Cost. $ -8,000 -13,000 Salvage value, year 4, $ GI – OE, $ per year 3,500 5,000 Recovery period, yearsA contractor can buy dump trucks for ₱ 800,000 each or rent them for ₱ 1,200 per truck per day. The truck has a salvage value of ₱ 100,000 at the end of its useful life of 5 years. The annual cost of maintenance is ₱ 20,000. Using annual cost method and 14% interest rate, determine the number of days per year that a truck must be used to warrant its purchased. Use sinking fund method of depreciation.The initial cost of a building is $ 125,358, its annual rental income will be $ 17,777 and its annual operating expenses will be $ 8,147, it is estimated that the building can be sold for $ 88,963 at the end of 22 years of service. What is the rate of return on the property?
- An owner can lease her building for $150,000 per year for three years. The explicit cost of maintaining the building is $50,000, and the implicit cost is $65,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 6 percent, determine the present value of the stream of: Instructions: Do not round intermediate calculations. Round your final calculation to two decimal places. a. Accounting profits. $ b. Economic profits. $Computers and peripheral equipment will be purchased for $27,000. It is 5-year MACRS-GDS property and qualifies for 50% bonus depreciation. What are the depreciation values in years 1 and 2? a. $13,500 and $4,320 b. $16,200 and $4,320 c. $27,000 and $0 d. $5,400 and $8,640.The value of your investment is divided into $30,000 for the land and $120,000 for the office space. Assume the salvage value of your investment is $40,000 at the end of seventh year. Using CCA=1%, compute the undepreciated capital cost of the office space for year four. a) Between $114,000 and $117,000 b) Between $120,000 and $123,000 c) Between $95,000 and $98,000 O d) Between $110,000 and $113,000 e) None of the answers are correct f) Between $92,000 and $95,000
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