Question
In: Accounting
Calculate 3-year property MACRS percentages. Show all your work.c
Calculate 3-year property MACRS percentages. Show all your work.c
Solutions
Expert Solution
Since there are some equations, I preferred a handwritten note. Results are tabulated in the answer for your easier understanding. Hope that it is clear for you and it really helped you.
In case of any doubt, please feel free to ask in the comment section. Thank you.
MACRS 3-year depreciation Shedule
| Year | Adjusted Basis | Depreciation | Cumulative | Book Value |
| 1 | 10,000 | 1666.67 | 1666.67 | 8333.33 |
| 2 | 8333.33 | 3333.33 | 5000 | 5000 |
| 3 | 5000 | 3333.33 | 8333.33 | 1666.67 |
| Final | 1666.67 | 1666.67 | 10000 | 0 |
ekkarill92 answered 2 years agoRelated Solutions
Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery...
Rounded Depreciation Percentages by Recovery Year Using MACRS
for
First Four
Property Classes
Percentage
by recovery year*
Recovery year
3
years
5
years
7
years
10
years
1
33%
20%
14%
10%
2
45%
32%
25%
18%
3
15%
19%
18%
14%
4
7%
12%
12%
12%
5
12%
9%
9%
6
5%
9%
8%
7
9%
7%
8
4%
6%
9
6%
10
6%
11
4%
Totals
100%
100%
100%
100%
A
firm is considering renewing its equipment to...
MACRS Fixed Annual Expense Percentages by Recovery Class Year 3-Year 5-Year 7-Year 10-Year 1 33.33% 20.00%...
MACRS Fixed Annual Expense Percentages by Recovery
Class
Year
3-Year
5-Year
7-Year
10-Year
1
33.33%
20.00%
14.29%
10.00%
2
44.45%
32.00%
24.49%
18.00%
3
14.81%
19.20%
17.49%
14.40%
4
7.41%
11.52%
12.49%
11.52%
5
11.52%
8.93%
9.22%
6
5.76%
8.93%
7.37%
7
8.93%
6.55%
8
4.45%
6.55%
9
6.55%
10
6.55%
11
3.28%
NPV. Mathews Mining Company is looking at a
project that has the following forecasted sales: first-year
sales are 7,000 units, and sales will grow...
MACRS Fixed Annual Expense Percentages by Recovery Class Year 3-Year 5-Year 7-Year 10-Year 1 33.33% 20.00%...
MACRS Fixed Annual Expense Percentages by Recovery
Class
Year
3-Year
5-Year
7-Year
10-Year
1
33.33%
20.00%
14.29%
10.00%
2
44.45%
32.00%
24.49%
18.00%
3
14.81%
19.20%
17.49%
14.40%
4
7.41%
11.52%
12.49%
11.52%
5
11.52%
8.93%
9.22%
6
5.76%
8.93%
7.37%
7
8.93%
6.55%
8
4.45%
6.55%
9
6.55%
10
6.55%
11
3.28%
Project cash flow and NPV. The managers of
Classic Autos Incorporated plan to manufacture classic
Thunderbirds (1957 replicas). The necessary foundry equipment will
cost a...
what is the year MACRS property for a warehouse placed in service in 1992?
what is the year MACRS property for a warehouse placed in service
in 1992?
MACRS Depreciation Allowances Property Class Year 3-Year 5-Year 7-Year 1 33.33% 20.00% 14.29% 2 44.45 32.00 ...
MACRS Depreciation Allowances
Property Class
Year
3-Year
5-Year
7-Year
1
33.33%
20.00%
14.29%
2
44.45
32.00
24.49
3
14.81
19.20
17.49
4
7.41
11.52
12.49
5
11.52
8.93
6
5.76
8.92
7
8.93
8
4.46
Use the following information to answer the next three
questions:
Some new equipment under consideration will cost $2,600,000 and
will be used for 4 years. Net working capital will experience a one
time increase of $559,000 if the equipment is purchased. The
equipment is expected...
MACRS Depreciation Allowances Property Class Year 3-Year 5-Year 7-Year 1 33.33% 20.00% 14.29% 2 44.45 32.00 ...
MACRS Depreciation Allowances
Property Class
Year
3-Year
5-Year
7-Year
1
33.33%
20.00%
14.29%
2
44.45
32.00
24.49
3
14.81
19.20
17.49
4
7.41
11.52
12.49
5
11.52
8.93
6
5.76
8.92
7
8.93
8
4.46
Use the following information to answer the next three
questions:
Some new equipment under consideration will cost $2,600,000 and
will be used for 4 years. Net working capital will experience a one
time increase of $559,000 if the equipment is purchased. The
equipment is expected...
Use the after-tax IRR method to evaluate the following three alternatives for MACRS 3-year property, and offer a recommendation
Use the after-tax IRR method to evaluate the following three alternatives for MACRS 3-year property, and offer a recommendation. The after-tax MARR is 25%, the project life is 5 years, and the firm has a combined incremental tax rate of 45%.
A. A fixed asset is classified as 5-year MACRS property and has an initial cost of...
A.
A fixed asset is classified as 5-year MACRS property and has an
initial cost of $41,000 What is the aftertax cash flow from the
sale of this asset if the pre-tax salvage value at the end of year
3 is $17,500 and the tax rate is 34 percent?
Year
Five-Year
Property Class
1
20.00
%
2
32.00
3
19.20
4
11.52
5
11.52
6
5.76
$15,439.38
$15,558.04
$15,564.72
$15,463.06
B.
A firm has sales for the...
Show all your work Show all your work 3. Sales discount- allocate the following transactions into...
Show all your work
Show all your work
3. Sales discount- allocate the following transactions
into the correct part of the
accounting equation and their correct T account
a. Brown Company sold merchandise on account to Black Company
$32,456
b. Black Company returned $10,121 worth of merchandise (account was
credited)
C. Brown Company received a check from Black Company less the
returns with an
8% discount of 15/30
4. Purchase discount- allocate the following
transactions into the correct part of...
A machine is classified as a ten-year MACRS property. Compute the book value for tax purposes...
A machine is classified as a ten-year MACRS property. Compute
the book value for tax purposes at the end of five years. The cost
basis is $225,000.
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