Assume that a piece of equipment cost $5,000 and had accumulated depreciation of $3,000. What is the book value of the equipment? Is the book value equal to the fair market value of the equipment? Explain.
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Assume that a piece of equipment cost $5,000 and had accumulated depreciation of $3,000. What is the book value of the equipment? Is the book value equal to the fair market value of the equipment? Explain.
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- An asset with a cost of $100,000 and accumulated depreciation of $80,000 is sold for $8000.What is the amount of the gain or loss on disposal of the plant asset?MalMax purchased a depreciable asset. What would be the difference in total assets at the end of the first year if MalMax chooses straight-line depreciation versus double-declining-balance depreciation?Questions: A housewife paid $ 67.50 for an electric machine. At the end of 10 years, it was valued at $10. Assuming that yearly depreciation is a constant amount, find the annual depreciation.
- How does tax depreciation affect income taxes?A machine shop purchased 10 years ago a milling machine for $60,000. A straight line depreciation reserve had been provided on a 20 year life of a machine. The owner of the machine shop desires to replace the old milling machine with a modern unit of many advantages costing $100,000. It can sell the old unit for $20,000. How much new capital will be required for the purchase?ASAP
- Question 3 Some devices can be obtained for $20,000. At the end of 5 years, they can be sold for $2,000. 1 pts Compute the depreciation at the end of year 2 and the book value at the end of the same year using double declining balance depreciation. $1,728 & $2,592 $4,800 & $7,200 $8,000 & $4,800 $2,280 & $4,320The MacBook you bought for 50,000 depreciates in value each year by a fixed rate of 20% of its value at the beginning of each year. What would it be its book value after 9 years? Use declining balance method. Your answer should only be a REAL NUMBER with NO UNITS and NO COMMAS. Round off to nearest 2 decimal places (e.g. 2500.36).12. A video-recording system was purchased 3 years ago at a cost of $39,000. A 5-year recovery period and DDB (Double Declining Balance) depreciation have been used to write off the basis. The system is to be replaced this year with a trade-in value of $5,000. What is the difference between the book value and the trade-in value? The difference between the book value and the trade-in value is $________ .
- What are the two different ways most firms calculate depreciation?An SMP machine costs $500,000 and has a $50,000 salvage value after 10 years of use. Using straight-line depreciation, what are the depreciation charge and book value for the machine after year 5?Compute the interest paid on a 4-year lease for a $27,671 car if the annual rate of depreciation is 12% and the lease's annual interest rate is 4.3%.