A wedding maching custs $250,000. A facilitypurchases one and plans to use it for 10 years, at'which point it will have a value of 35,000. calculatethe depreciation allowance and book value after 5yrak of useusing Straight line depreciationbalance depreciation(a)(b) using deckning() Uring MACKS 7-year property with 50% bonusdepreciation(d) usingMACKS7- year property with 50% bonusdepreciation of the machine is soldifin year s?

Depreciation is an accounting method which is used to reduce the book value of asset due to its…

Answered: A wedding maching custs $250,000. A…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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An asset with a purchase price of $486,966 falls in the 5-year MACRS asset class. The asset will be sold at the end of a three year project for $153,883. What is the book value of the asset at the end of the project? Round your answer to the nearest dollar. Year Depreciable Allowance 1 20% 32 19 12 11 6. 6. 4-
A machine was purchased for 100,000 and has a salvage value of 20,000 what is the total depreciation on the 7th year if the economic life is 10 years? Assume i = 8% Use sinking fund method
A machine, purchased for$50,000, has a depreciable life of five years. It will havean expected salvage value of $4,500 at the end of the depreciable life. Find theyearly depreciation, Book value every year using the following methods: a. MATHESON EQUATION b. SINKING FUND METHOD ( i = 12%)
An equipment cost P60,000 today and its salvage value is P20,000 after 6 years. Calculate its depreciation at year 2 with 3.45% interest rate.Use Sinking Fund Method
a company owns earth moving equipment that cost P100,00. After 8 years it will have estimated salvage value of P20,000. Compute the annual depreciation cost and the book value at the end of 5 years a) using SLD b) using sinking fund
An asset is planned to be purchased with an initial value of $400,000 and an estimatedsalvage value of $50,000 after 5 years of use. It will be depreciated using the straight-line method.With this asset $500,000 of annual income will be generated and there will beannual costs of $100,000The trem (minimum acceptable rate of return), m = 10% per yearThe annual tax rate is 40%Calculate the present value of this investment and make a recommendation. Please show your work
Using the sinking fund method: Prepare a depreciation table for an asset that was bought at P150, 000 and estimated to be useful for a period of 7 years. Estimated salvage value is 10% of its original cost. Money is worth 10% CA. Year Initial Book Value Depreciation Total Depreciation Book Value 1 150, 000 2
A machine was bought P100,000 and the scrap value is P15,000 after 30years. Calculate its total depreciation at year 8 with 5% interest rate.Use Sinking Fund Method
A P 150, 000 printing machine was purchased three years ago and will last five more years with a scrap value of P 11, 500. Construct a depreciation table if depreciation method uses the Sinking Fund Method with i = 12%.
Solve on the white paper or the typed.Not use excel Q) The original cost of a certain piece of equipment is 150,000 and sometimes it is depreciated by a 10% sinking fund method. Determine the annual depreciation charge if the book value of the equipment after 10 years is the same as if it had been depreciated at 14,000 each year by straight-line formula
A Property is expected to have 5 Year NOI flow of $10,000, $12,000, $15,000, $18,000, and $10,000 and a final (year 5) sale price of $90,000. Using capitalization rate of 12% what is the estimated market value of the property? 97,354 104,664 87,641 100,919 90,724
An asset is purchased for $90,000 with the intention of keeping it for 10 years, but is sold at the end of year 3. A total of $30,000 was borrowed money that was to be repaid over three years in equal annual payments, including principal and interest. The depreciation is correct for the appropriate MACRS Recovery Period. MARRAT = 12%. a. What is the MACRS property class of the asset? b. What is the salvage value received at the end of year 3? c. What is the loan interest rate? d. What is the book value at the end of year 3? e. Determine the values of the entries in the empty cells.

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