Question
In: Advanced Math
Delia purchased a new car for $23,350. This make and model straight line depreciates to zero...
Delia purchased a new car for $23,350. This make and model straight line depreciates to zero after 13 years. Identify the coordinates of the x- and y-intercepts for the depreciation equation. Determine the slope of the depreciation equation. Write the straight line depreciation equation that models this situation.
Solutions
Colby Messinger answered 2 years agoRelated Solutions
A company buys a machine for $700,000 and depreciates it on a straight-line basis to zero...
A company buys a
machine for $700,000 and depreciates it on a straight-line basis to
zero over a five- year period for tax purposes. The investment
would result in pre-tax cash cost savings of $190,000 per year, for
five years. At the end of 5 years, it is estimated that the machine
can be sold for $75,000. The gain on the sale of the machine would
be taxed at the company’s marginal corporate tax rate of 20%. Based
on the...
The new equipment will cost $400,000. It would be depreciated to zero using straight-line depreciation over...
The new equipment will cost $400,000. It would be depreciated to
zero using straight-line depreciation over a 5-year period. The
estimated salvage value is $100,000 at the end of the project. The
initial requirement in net working capital is $55,000, all of which
will be recouped at the end of the project. The projected operating
cash flows are $155,500 per year. The tax rate is 30%. What is the
internal rate of return on this 5-year project? Group of answer...
Independent Energy depreciates all assets using the straight-line method. The company's fiscal year end is December...
Independent Energy depreciates all assets using the
straight-line method. The company's fiscal year end is December 31.
The following selected transactions and events occurred during the
first three years:
2020
Jan
1
Purchased equipment from the Equipment World for $214,500 on
account.
Independent Energy also incurred freight and installation costs
of $1,500 and $4,000 respectively.
Sep
30
Paid for annual insurance of $4,200 and routine maintenance of
$1,700 for the
machine. The insurance policy expires on September 30, 2021.
Dec...
Domingo Corporation changed the way it depreciates its computers from the sum-of-the-year’s-digits method to the straight-line...
Domingo Corporation changed the way it depreciates its computers
from the sum-of-the-year’s-digits method to the straight-line
method beginning January 1, 2018. Domingo also changed its
estimated residual value used in computing depreciation for its
office building. At the end of 2018, Domingo changed the specific
subsidiaries constituting the group of companies for which its
consolidated financial statements are prepared.
Required:
1. For each accounting change Domingo undertook, indicate the
type of change and how Domingo should report the change. Be...
A three-year project will cost $150,000 to construct. This will be depreciated straight line to zero...
A three-year project will cost $150,000 to construct. This will
be depreciated straight line to zero over the three-year life. The
project is expected to generate sales of $450,000 per year. It has
annual variables costs of $200,000 and annual fixed costs of
$100,000 per year. The appropriate tax rate is 25 percent and the
required rate of return on the project is 16 percent. Assume that a
salvage company will pay $60,000 (before taxes) for the assets at
the...
A three-year project will cost $150,000 to construct. This will be depreciated straight line to zero...
A three-year project will cost $150,000 to construct. This will
be depreciated straight line to zero over the three-year life. The
project is expected to generate sales of $450,000 per year. It has
annual variables costs of $200,000 and annual fixed costs of
$100,000 per year. The appropriate tax rate is 25 percent and the
required rate of return on the project is 16 percent. Assume that a
salvage company will pay $60,000 (before taxes) for the assets at
the...
A three-year project will cost $150,000 to construct. This will be depreciated straight line to zero...
A three-year project will cost $150,000 to construct. This will
be depreciated straight line to zero over the three-year life. The
project is expected to generate sales of $450,000 per year. It has
annual variables costs of $200,000 and annual fixed costs of
$100,000 per year. The appropriate tax rate is 25 percent and the
required rate of return on the project is 16 percent. Assume that a
salvage company will pay $60,000 (before taxes) for the assets at
the...
Straight-Line Depreciation Irons Delivery Inc. purchased a new delivery truck for $42,000 on January 1, 2019....
Straight-Line Depreciation Irons Delivery Inc. purchased a new
delivery truck for $42,000 on January 1, 2019. The truck is
expected to have a $2,020 residual value at the end of its 5-year
useful life. Irons uses the straight-line method of depreciation.
Required: Prepare the journal entry to record depreciation expense
for 2019 and 2020. 2019 Dec. 31 Depreciation Expense Accumulated
Depreciation (Record straight-line depreciation expense) 2020 Dec.
31 Depreciation Expense Accumulated Depreciation (Record
straight-line depreciation expense)
A project requires an initial investment of $1,000,000 and is depreciated straight-line to zero salvage over...
A project requires an initial investment of $1,000,000 and is
depreciated straight-line to zero salvage over its 10-year
life.
The project produces items that sell for $1,000 each, with
variable costs of $700 per unit. Fixed costs are $350,000 per
year.
What is the accounting break-even quantity? o Q = (FC + D)/(P
– v)
What is the operating cash flow at accounting break-even? o
OCF= [PQ - vQ – FC – D] + D
What is...
A project requires an initial investment of $1,000,000 and is depreciated straight-line to zero salvage over...
A project requires an initial investment of $1,000,000 and is
depreciated straight-line to zero salvage over its 10-year life.
The project produces items that sell for $1,000 each, with variable
costs of $700 per unit. Fixed costs are $350,000 per year. What is
the accounting break-even quantity and financial break-even
quantity (assume 10% as discount rate)? I'm not too sure how to go
about this question. Any help?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Procter & Gamble Embraces Continuous Planning and Execution The Procter & Gamble Company (P&G) is an...
- Explain what a project is amd how priject management can contribute to an organization. Briefly outline...
- Instructions: Each of the following scenarios illustrates one of Freud’s defense mechanisms from the list below....
- What are the SHDN, LNA in opamp What are the TXCO coding algorithm for binary and...
- Need to program a maze traversal program using dynamic array and stacks. The problem is faced...
- what were some of Ida B Wells significant contributions to the civil rights movement?
- In 2007, there were many people in Sri Lanka who have an opinion that the government...
ADVERTISEMENT