Your company purchases a patent for $42,000 to attempt to compete in a usually restricted market. This patent does not have a salvage value at the end of its 5-year useful life. You aretasked with computing the depreciation schedule and book value for the patent using double declining balance with a switch to SL method (if necessary).Question 1 Part B: Complete the following table to show the depreciation schedule.If it is necessary to switch from DDB to SL depreciation, when the switch occurs, only enter the value of the SL depreciation and enter O for the DDB depreciation (e.g. when/if the switchoccurs, DDB: 0 and SL: X).Enter your answers in the form 1234 (enter O for blank table cells).NO DECIMALS1235YearBn-1 (enter either thenumber with no decimals,or 0 if blank)DDB (enter either thenumber with nodecimals, or 0 if blank)SL (enter either thenumber with no decimals,or O if blank)Dn (enter either theDDB or SL? (enter DDB, SL, or 0 ifneither applies below)number with nodecimals, or 0 if blank)Bn (enter either thenumber with nodecimals, or 0 ifblank)

Step 1: Question 1 Part B : Complete the following table to show the depreciation schedule If it is…

Answered: Your company purchases a patent for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Can you please show me how to do these parts on excel? I have included the solutions to the parts, but I need to see how it is done with the formulas/equations on Excel, so I can fully understand what is going on. Thank you in advance!
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PLEASE USE EXCEL AND SHOW FORMULAS Six years ago, a company purchased $30,000 of equipment. The equipment has just been sold for $5000. The equipment was depreciated using 50% bonus depreciation / 50% MACRS (using a 5-year recovery period). The actual savings due to the purchase of the equipment is shown below. The firm's MARR is 12% and it's tax rate is 25%. What is the after-tax present worth of the investment? Year 1 2 3 4 5 6 Savings 5000 6000 7000 7000 4000 3000
Katie's restaurant purchased a new grill at a cost of $6,000. The expected life of the grill is 5000 hours of production, at which time it will have a salvage value of $600. Using the units-of-production method, prepare a depreciation schedule given the following production: year 1: 1000 hours; year 2: 1250 hours; year 3: 1000 hours: year 4: 1750 hours Complete the schedule. Amount of Year Depreciation 0 1 2 $1000 $1250 $1000 $1750 (Round to the nearest dollar as needed.) 3 Accumulated Depreciation xample Get more help. 1080 $1350 $1080 $1890 Book Value $6,000 $4920 $ 3570 $ 2490 $600 Clear all Skill builder Check answer
You are building guest huts at a holiday resort, and you need to choose whether to build your huts out of straw, wood, or brick. Straw is the cheapest but depreciates the most quickly; brick is the most expensive but depreciates least; wood is intermediate. Assume that all types of huts are equally picturesque/functional. They differ only in terms of durability. The cost (and depreciation rates) of the different hut types is: - Brick: £3,500 (10% depreciation) - Wood: £3,000 (15% depreciation) - Straw: £2,500 (20% depreciation) a) The interest rate is 5%, which type of hut should you buy? b) The interest rate is 20%, which type of hut should you buy? c) Intuitively, why were the answers for parts (a) and (b) different? Explain in words.
3
You purchased a molding machine at a cost of $88,000. It has an estimateduseful life of 12 years with a salvage value of $8,000. Determine the following·:(a) The amount of annual depreciation computed by the straight-line method.(b) The amount of depreciation for the third year computed by using the double-declining-balance method.
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Subject: Engineerings Economics Topics:1. Declining Balance Method (DBM) Please help me to solve this in step by step manner. Make sure to analyze the question well.BOX your final answer Question: A machine cost P160,000 and is estimated to have a life of 6 years. If the rate of depreciation is 25%, find the salvage value using the declining balance method.Please use the following sources AND THE FORMULA below:
A new barcode reading device has an installed cost basis of $24,160 and an estimated service life of eight years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year eight? b. What is the book value at the end of year seven? c. What is the gain (or loss) on the disposal of the device if it is sold for $3,400 after seven years?
Freeman Engineering paid $40,000 for specialized equipment for use with their new global positioning system/geographic information system (GPS/GIS). The equipment was depreciated over a 3-year recovery period using Modified Accelerated Cost Recovery System (MACRS) depreciation. The company sold the equipment after 2 years for $8,000 when it purchased an upgraded system. Determine the amount of the depreciation recapture or capital loss involved in selling the asset. The amount of capital loss is determined to be $____
6.

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