A): Calculate the total cost, total depreciation, and annual depreciation (in $) for the following assets by using the straight-line method. (Round your answers to the nearest cent.) *chart attached* B): Mason Industries purchased a drilling rig for $75,900. Delivery costs totaled $2,831. The useful life is 7 years and the salvage value is $12,938. Prepare a depreciation schedule using the straight-line method. *CHART ATTACHED*

A): Calculate the total cost, total depreciation, and annual depreciation (in $) for the following assets by using the straight-line method. (Round your answers to the nearest cent.) chart attached B): Mason Industries purchased a drilling rig for $75,900. Delivery costs totaled $2,831. The useful life is 7 years and the salvage value is $12,938. Prepare a depreciation schedule using the straight-line method. CHART ATTACHED

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 2E

See similar textbooks

Similar questions

Compare the different depreciation methods.? Give an example of how companies depreciate their plant assets under each method?
The “Big-Deal” Company has purchased new furniture for their offices at a retail price of $125,000. An additional $20,000 has been charged for insurance, shipping, and handling. The company expects to use the furniture for 10 years (useful life = 10 years) and then sell it at a salvage (market) value of $15,000. Use the SL method of depreciation to answer these questions. a. What is the depreciation during the second year? b. Whatisthe BVoftheasset at the end of the first year? c. What is the BV of the asset after 10 years?
Define the term Depreciation?
Determine the rate of depreciation, the total depreciation, the total depreciation up to the end of the 8th year and the book value at the end of 8 years for an asset that costs P 15,000 new and has an estimated scrap value of P 2,000 at the end of 10 years by (a) Declining balance method (b) Double Declining balance method
Identify the depreciation method used for Double-declining-balance depreciation?
Write note on why depreciation is important in Economic analysis
You have started a business and purchased a new truck (asset class 00.22). The cost basis for depreciation purposes is $175,000. Salvage value at year six is $20,000. ***Assume it will be depreciated under the GDS: a. What is the MACRS depreciation in the third year? b. What is the cumulative depreciation through the end of year three? C.What is the BV at the end of third year if the equipment is disposed of at that time? d. What will be the gain(loss) for tax if you sell the equipment for $40,000 at the end of year three?
Your company bought a new machine for $39,000. The machine falls into the 7 - year MACRS category: Year Depreciation rate 1 14.29% 2 24.49% 3 17.49% 4 12.49% 58.93% 68.92% 78.93% 84.46% What is the allowed amount of depreciation for year 3? What is the allowed amount of depreciation for year 3?
Your company has purchased a large new trucktractor for over-the-road use (asset class 00:26). It has a cost basis of $185,000. With additional options costing $13,000, the cost basis for depreciation purposes is $198,000. Its MV at the end of six years is estimated as $37,000. Assume it will be depreciated under the GDS: a. What is the cumulative depreciation through the end of year four? b. What is the MACRS depreciation in the second year? c. What is the BV at the end of year one? Click the icon to view the partial listing of depreciable assets used in business Click the icon to view the GDS Recovery Rates (r). a. The cumulative depreciation through the end of year four is $ (Round to the nearest dollar.) b. The MACRS depreciation in the second year is $ (Round to the nearest dollar.) c. The BV at the end of year one is $ (Round to the nearest dollar.)
the 50,000 from the depreciation formula, is it the annual profit or is it the salvage value?
Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $176,000. With additional options costing $14,000, the cost basis for depreciation purposes is $190,000. Its MV at the end of six years is estimated as $41,000. Assume it will be depreciated under the GDS: a. What is the cumulative depreciation through the end of year two? b. What is the MACRS depreciation in the fourth year? c. What is the BV at the end of year two?
What is the depreciation rate dt each year t for an asset that has a 5-year recovery period and is straight line depreciated?