Question
In: Economics
The Acme Chemical Company paid $45,000 for research equipment, which it believes will have zero salvage...
The Acme Chemical Company paid $45,000 for research equipment, which it believes will have zero salvage value at the end of its 5-year life. Compute the depreciation schedules using:
(a) Straight line
(b) Sum-of-years’ digits
(c) MACRS
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
The Acme Chemical Company paid $45,000 for research equipment, which it believes will have zero salvage...
The Acme Chemical Company paid $45,000 for research equipment,
which it believes will have zero salvage value at the end of its
5-year life.The research equipment will have a market value of
$5000 at the end of year Compute the depreciation schedule
using:
(a) Straight line
(b) 100% bonus depreciation
(c) MACRS
(d) 60% bonus depreciation plus MACRS
EKU paid $100,000 for research equipment, which it believes will have zero salvage value at the...
EKU paid $100,000 for research equipment, which it believes will
have zero salvage value at the end of its 5-year life. Compute the
depreciation schedule using:
Straight line (SL)
Sum-of-Years’ Digits (SOYD)
Double Declining Balance (DDB)
Modified Accelerated Cost Recovery System (MACRS).
A company owns a production machine that cost $5,000 with a salvage value of zero. The...
A company owns a production machine that cost $5,000 with a
salvage
value of zero. The machine was just sold for $1,100.
Accumulated
depreciation has just been updated and accurately reflects an
amount
of $4,000. In good order and form record the necessary General
Journal
entry to dispose of the machine
Fred's Widget Company has purchased $500,000 in equipment, which can be sold for a salvage value...
Fred's Widget Company has purchased $500,000 in equipment, which
can be sold for a salvage value of $300,000 at any time. The best
interest rate on alternative investments is 5%. What is the cost of
using this machinery for one year? How would your answer be
different if the machinery had not yet been purchased? **Please
explain with details*** thank you
Dow Chemical Inc.is considering investing in a project that will cost $152,000 and have no salvage...
Dow Chemical Inc.is considering investing in a project that will
cost $152,000 and have no salvage value at the end of its 5-year
life. It is estimated that the project will generate annual cash
inflows of $40,000 each year. The company has a hurdle or cutoff
rate of return of 9%.
Instructions
Using the internal rate of return method calculate an
approximate interest yield for the project. (use tables from
Appendix G)
Should this project be accepted by Dow Chemical...
Dow Chemical Inc.is considering investing in a project that will cost $152,000 and have no salvage...
Dow Chemical Inc.is considering investing in a project that will
cost $152,000 and have no salvage value at the end of its 5-year
life. It is estimated that the project will generate annual cash
inflows of $40,000 each year. The company has a hurdle or cutoff
rate of return of 9%.
Instructions
Using the internal rate of return method calculate an
approximate interest yield for the project. (use tables from
Appendix G)
Should this project be accepted by Dow Chemical...
Product A Product B Initial Investment: Cost of Equipment (zero salvage value) $170,000 $380,000 Annual Revenues...
Product A
Product B
Initial Investment:
Cost of Equipment (zero salvage value)
$170,000
$380,000
Annual Revenues and costs:
Sales Revenue:
$250,000
$350,000
Variable Expenses:
$120,000
$170,000
Depreciation Expense:
$34,000
$76,000
Fixed out-of-pocket operating costs:
$70,000
$50,000
Item
Periods
Amount of Cash Flows
Product A:
Purchase of equipment
$170,000
Net annual cash inflows (above)
$60,000
Net Present Value:
Product B:
Purchase of equipment
$380,000
Net annual cash inflows (above)
$130,000
Net Present Value:
What would the amount of cash flows be?
A company invests in an equipment that costs $300k with $40k salvage value and will be...
A company invests in an equipment that costs $300k with $40k
salvage value and will be depreciated over 8 years according to the
DDB method. The equipment could generate revenues of $25k in the
first year and increase by 5000$ every year thereafter. The
operating and maintenance costs of the equipment are 1200$ in the
first year and increase by 10% each year thereafter. The tax rate
of the company Income is 32%.
A. Develop the cash flow before tax...
A piece of equipment having a negligible salvage and scrap value if estimated to have a...
A piece of equipment having a negligible salvage and scrap value
if estimated to have a MACRS and straight line recovery period of 5
years. The original cost of ther equipment was $500,000. Determin
the depreciation charge of the euipment for the second yeqr if
straight line depreciation is used and the percentage of the
original investment paid off in the first 2 years.
2. Zero Coupon Bond B Company sold a $5,000,000, 8 year zero coupon (zero interest paid)...
2. Zero Coupon Bond
B Company sold a $5,000,000, 8 year zero coupon (zero interest
paid) bond on January 1,
2018 to yield an effective interest rate of 7% annual.
Calculate the sale price of the bond. Prepare an 8 year
amortization schedule. Make any
required entry on December 31, 2021 and on Dec. 31, 2025.
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