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.

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Amanda K answered 2 years ago

$250,000 is invested in equipment having a negligible salvage value regard- less of the number of...

$250,000 is invested in equipment having a negligible salvage value regard- less of the number of years used. O&M costs equal $60,000 the first year and increase $12,000 per year. Based on a MARR of 10%, what are the optimum replacement interval and minimum EUAC?

A piece of equipment is purchased for $40,000 and has an estimated salvage value of $1,000...

A piece of equipment is purchased for $40,000 and has an estimated salvage value of $1,000 at the end of the recovery period, a recovery period is five years. Prepare a depreciation schedule for the piece of equipment using the straight-line method

part 1) A piece of equipment is purchased for $400,000 and has an estimated salvage value...

part 1) A piece of equipment is purchased for $400,000 and has an estimated salvage value of $50,000 at the end of a five year recovery period. Using the sum of the years depreciation method, what is the book value in year 4? Group of answer choices $73,333 -$216,667 $120,000 $50,000 part 2) A piece of equipment is purchased for $100,000 and has an estimated salvage value of $12,000 at the end of a seven year recovery period. Using the...

A company installed a piece of equipment with a 5-year life and no salvage value. The...

A company installed a piece of equipment with a 5-year life and no salvage value. The new equipment costs $500,000 and will generate $150,000 in savings each year. Old equipment with a book value of $50,000 and a remaining life of 2 years was sold for $20,000. No changes in working capital are anticipated. The effective income tax rate is 40%. The total initial investment for the new equipment is a. $450,000. b. $468,000. c. $500,000. d. $550,000.

An equipment costing P 380,000 has an estimated scrap value of P 25,000 at the end...

An equipment costing P 380,000 has an estimated scrap value of P 25,000 at the end of its economic life of 10 years. Using Double-Declining Balance Method, what is the book value after 8 years? Express your answer in whole number.

Computing Depreciation Expense. Equipment costing $810,000, with an expected scrap value of $100,000 and an estimated...

Computing Depreciation Expense. Equipment costing $810,000, with an expected scrap value of $100,000 and an estimated useful life of six years, was purchased on January 1 of the current year. Required: Calculate the depreciation expense for the first two years of the asset’s useful life using (a) the straight-line method and (b) the double-declining balance method. Which method would you prefer to use for (a) income tax purposes and (b) financial reporting purposes? Why? Please show all steps.

1. A piece of equipment was purchased new at $35,000. The salvage value is $1500 after...

1. A piece of equipment was purchased new at $35,000. The salvage value is $1500 after its 8 year service life. Determine the depreciation and blue book value for the life of the asset, assuming: a) straight line depreciation b) MACRS (use 5 yr table) c) SOYD method d) DDB method

A company purchases a piece of equipment for $15,000. After nine years, the salvage value is...

A company purchases a piece of equipment for $15,000. After nine years, the salvage value is $900. The annual insurance cost is 5% of the purchase price, the electricity cost is $600/yr, and the maintenance and replacement parts cost is $120/yr. The nominal annual interest rate is 9.6%, compounded monthly. Neglecting taxes, what is most nearly the present worth of the equipment if it is expected to earn the company $4500 per year? $2300 $2800 $3200 $3500

On March 1, 2015, a company bought equipment for 900.000. The estimated salvage value of the...

On March 1, 2015, a company bought equipment for 900.000. The estimated salvage value of the equipment after 5 years of useful life is 50.000. The estimated productive capacity of the equipment during its useful life is 1.000.000 units. 1) Calculate the depreciation for the year 2015, using the straight-line method. 2) If 180.000 units are produced in the year 2015 and 240.000 are produced in the year 2016, what is the book value of the equipment on December 31,...

Equipment with a ten-year estimated useful life and no salvage value is sold at the end...

Equipment with a ten-year estimated useful life and no salvage value is sold at the end of the third year of its useful life. How would using the straight-line method of depreciation instead of the double-declining balance method of depreciation affect revenues and expenses?

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