Question
In: Finance
Q12) A company has purchased an equipment costing $84,300. The equipment has a useful life of...
Q12) A company has purchased an equipment costing $84,300. The equipment has a useful life of 3 years with a salvage value of $34,100. CCA will be taken using a rate of 30.00%. The tax rate is 29.00%, while the discount rate is 9.00%. Assuming the company takes all available CCA every year and there will be some assets remaining in the CCA class after year 3, what is the EAC of this equipment? 16,741 17,194 17,646 18,099 18,551
Solutions
Expert Solution
SEE THE IMAGE. ANY DOUBTS,
FEEL FREE TO ASK. THUMBS UP PLEASE
jeff jeffy answered 1 year agoRelated Solutions
A company purchased equipment for $110,000 that is expected to have a useful life of 5...
A company purchased equipment for $110,000 that is expected to
have a useful life of 5 years and a salvage value of $10,000. If
double declining balance depreciation is used, what is the
accumulated depreciation at the end of Year 2?
$74,000
$60,000
$70,400
A company purchased equipment for $100,000 that is expected to have a useful life of 10...
A company purchased equipment for $100,000 that is expected to
have a useful life of 10 years and no salvage value. The company
sold the equipment at the end of the fourth year of its useful
life, at which point it had fair market value of $65,000. If the
asset was sold for $55,000 and was being depreciated using the
straight line method as was reported at book value, what amount of
gain or loss would be reported at the...
Moreno Corporation is considering investing in specialized equipment costing $525,000. The equipment has a useful life...
Moreno Corporation is considering investing in specialized
equipment costing $525,000. The equipment has a useful life of five
years and a residual value of $55,000. Depreciation is calculated
using the straight-line method. The expected net cash inflows from
the investment are
Year 1
$245,000
Year 2
$190,000
Year 3
$152,000
Year 4
$112,000
Year 5
$95,000
$794,000
Moreno Corporation's required rate of return is 14%.
The net present value of the Moreno Corporation's investment is
closest to
Select one:
a....
Co. is considering purchasing a piece of equipment costing $300,000. It has a useful life of...
Co. is considering purchasing a piece of equipment costing
$300,000. It has a useful life of 3 years and will be depreciated
straight-line to zero, after which it will be scrapped for $20,000.
This piece of equipment will save Teer Co. $125,000 per year in
pretax operating costs during its useful life but requires an
initial investment in NWC of $50,000. Teer Co. has a 20% tax rate
and a required rate of return of 10%.
What is the annual...
A company buys a piece of equipment for $62,000. The equipment has a useful life of...
A company buys a piece of equipment for $62,000. The equipment
has a useful life of five years. No residual value is expected at
the end of the useful life. Using the double-declining-balance
method, what is the company's depreciation expense in the first
year of the equipment’s useful life? (Do not round
intermediate calculations)
$12,400.
$24,800.
$15,500.
$31,000.
An asset is purchased on January 1 for $47,200. It is expected
to have a useful life of four years after which...
Company purchased equipment costing $239,000 on January 1, 2022. The equipment was assigned an estimated useful...
Company purchased equipment costing $239,000 on
January 1, 2022. The equipment was assigned an estimated
useful life of six years and an estimated salvage value
of $8,000. The equipment was to be depreciated using the
sum-of-the-years-digits' depreciation method.
On January 1, 2025, Company revised the life of
the equipment from six to thirteen years.
Calculate the amount of depreciation expense recorded
on
the equipment for 2025.
On Jan 3, 2017, Limestone Enterprises purchased equipment for $134,500. The equipment has a useful life...
On Jan 3, 2017, Limestone
Enterprises purchased equipment for $134,500. The equipment has a
useful life of five years or of 15,000 working hours and after the
useful life it will have a residual value of $12,000. The machine
was used for 1,400 hours in 2017, 2,100 hours in 2018; 3,700 hours
in 2019.
Required:
1. Calculate the depreciation expense for 2017 and 2018 under
each of the following methods:
i. Straight-line,
ii. Double
diminishing-balance, and
iii. Units-of
-production
2. Record the journal entry for...
On Jan 2, 2018, Sandstone Enterprises purchased equipment for $129,200. The equipment has a useful life...
On Jan 2, 2018, Sandstone Enterprises purchased equipment for
$129,200. The equipment has a useful life of four years or of
13,000 working hours and after the useful life it will have a
residual value of $13,500. The machine was used for 1,900 hours in
2018, 2,800 hours in 2019; 3,700 hours in 2020.
Required:
Calculate the depreciation expense for 2018 and 2019 under each
of the following methods:
Straight-line,
Double diminishing-balance, and
Units-of -production
Record the journal entry for...
On Jan 2, 2017, Sandstone Enterprises purchased equipment for $129,200. The equipment has a useful life...
On Jan 2, 2017, Sandstone Enterprises purchased equipment for
$129,200. The equipment has a useful life of four years or of
12,000 working hours and after the useful life it will have a
residual value of $14,000. The machine was used for 1,900 hours in
2017, 2,800 hours in 2018; 3,700 hours in 2019.
Required:
Calculate the depreciation expense for 2017 and 2018 under each
of the following methods:
Straight-line,
Double diminishing-balance, and
Units-of -production
Record the journal entry for...
On Jan 3, 2017, Limestone Enterprises purchased equipment for $139,200. The equipment has a useful life...
On Jan 3, 2017, Limestone Enterprises purchased equipment for
$139,200. The equipment has a useful life of four years or of
12,000 working hours and after the useful life it will have a
residual value of $14,000. The machine was used for 1,900 hours in
2017, 2,800 hours in 2018; 3,700 hours in 2019.
Required:
Calculate the depreciation expense for 2017 and 2018 under each
of the following methods:
Straight-line,
Double diminishing-balance, and
Units-of -production
Record the journal entry for...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Explain the term ‘strain rate sensitive’. Show your references.
- no copy paste please ABC Company is a leading showroom in selling branded Cars. The showroom...
- Under what conditions will a related diversification strategy notbe a source of competitive advantage for a...
- A rope exerts an 18-N force while lowering a 20-kg crate down a plane inclined at...
- Explain with an example, the need for change in organizations. OR why should organizations change?
- Suppose ABC Corporation has an obligation to pay $10,000 and $40,000 at the end of 5...
- In an effort to find something to do during self-quarantine, your friend flips a coin many...
ADVERTISEMENT