Your company purchases a patent for $46,000 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 0 for the DDB depreciation (e.g. when/if theswitch occurs, DDB: 0 and SL: X).Enter your answers in the form 1234 (enter 0 for blank table cells).NO DECIMALSYear012345Bn-1 (enter either thenumber with nodecimals, or 0 if blank)DDB (enter either thenumber with nodecimals, or 0 if blank)SL (enter either thenumber with nodecimals, or 0 if blank)DDB or SL? (enter DDB, SL, orO if neither applies below)Dn (enter either thenumber with nodecimals, or 0 if blank)Bn (enter either thenumber with nodecimals, or 0 if blank)

The straight line depreciation is calculated by dividing the initial cost of the asset by its useful…

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!
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.
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
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 $____
A couple of years ago, the company Health4All purchased land, a building, and two depreciable assets from another corporation. All of these have recently been disposed. Use the information shown to determine the presence and amount of any capital gain, capital loss, or depreciation recapture. Asset Land Building Asset 1 Asset 2 Purchase Price, $ -210,000 -800,000 -50,500 -10,000 Recovery Period, Years 27.5 3 3 Current Book Value, $ 320,000 15,500 5,000 Sales Price, $ 265,000 255,000 21,000 11,500 The capital gain (CG) amount for land is determined to be $ The capital loss (CL) amount for building is determined to be $ The depreciation recapture (DR) amount for asset 1 is determined to be $ The depreciation recapture (DR) amount for asset 2 is determined to be $ The capital gain (CG) amount for asset 2 is determined to be $
its practice question Please give me the correct answer and show me the work
An asset has an initial cost of $25,000, useful life of 5 years, and no salvage value. Using Double-Declining Balance (DDB) with a switch to SL at the optimal time, complete the following depreciation table: Enter your answer exactly as follow: 123456 EOY Dn (DDB with Switch to SL) 1 Book Value 2 3 + 5
27 A consortium of international telecommunication companies contracted for the purchase and installment of a fiber optic cable linking two major cities at a total cost of US$990 million. The amount includes freight and installation charges estimated at 10% of the above contract price. If the cable shall be depreciated over a period of 16 years with zero salvage value. What is the book value after 4 years using straight line method?

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