A factory bought new machinery at a price of $120,000. It cost them an additional $7,000 in shipping and delivery plus $12,000 installation. What is the cost basis of the machinery for depreciation and tax purposes? А. $120,000 В. $101,000 С. $132,000 D. $127,000 Е. $139,000
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- 1. Hula hoop fabrications cost $100 each. The H2H company is trying to decide how many of these machines to buy. The number of hoops for each year and for each level of capital stock shown as follows: Hula Hoop have a real value of $1 each. There is no other costs besides the cost of fabricators. a. Find the expected future marginal product of capital (in terms of dollar) for each level of capital. b. If the real interest rate is 12% per year, and the depreciation rate of capital is 20% per year, find the user cost of capital (in dollar per fabricator per year). How many fabricators should H2H buy?Apple is selling 30,000 units in Europe at an average price of 1500 euros per unit. Both the spot and forward rates are $1.20/euro. The cost of each unit in dollars is $1300 per unit. The elasticity of demand for Apple computers in Europe is Euro= 1.5. Now consider a depreciation of Euro (relative to US $) from $1.20/ euro to $1.08/Euro and assume zero passthrough. What is Apple's exposure? a. $45 mn b. $20 mn c. Euro 45 mn d. Euro 20 mn5. The first cost of a machine is Php 1,800,000 with a salvage value of Php 300,000 at the end of its six years of life. Determine the total depreciation after three years using the Straight Line Method of Depreciation.
- i will 10 upvotes do not use chatgpt urgent Which of the following statement correctly describes 'depreciation' ? (a) It is a monthly allowance for wear and tear of a capital good. (b) It is based on the demand and supply of consumer goods in market. (c) It is calculated as the cost of good divided by number of years of its useful life. (d) It accounts for sudden destruction of capital caused due to natural calamities.Suppose that you placed a commercial building (warehouse) in service inJanuary. The cost of property is $300,000, which includes the $100,000 value of land. Determine the amount of depreciation that is allowed during the first year of ownership.(a) $7,692(b) $5,128(c) $7,372(d)$4,915i will 10 upvotes urgent. Which of the following statement correctly describes 'depreciation' ? (a) It is a monthly allowance for wear and tear of a capital good. (b) It is based on the demand and supply of consumer goods in market. (c) It is calculated as the cost of good divided by number of years of its useful life. (d) It accounts for sudden destruction of capital caused due to natural calamities.
- 1. Price-level adjustment may be accomplished by using specific price indexes as well as a general price-level index. One possibility is to use a weighted-average price index for the firm's own mix of assets. 'What are the dangers here? 2. Contrast financial capital maintenance with physical capital maintenance. 3. Why might it be said that both constant dollar and current cost income numbers under SFAS No. 33 are “disaggregated?”9. Which statement is incorrect?I. An increase in the general price index means that the purchasing power of money’ has decrease.II. A decrease in the general price index means that the purchasing power of money’ has increase. 10. Which statement is correct?I. Intangible assets cannot be treated as having an indefinite useful life.II. Intangible assets with a finite useful life shall be measured at cost and tested annually for impairmentAAA Agricultural Machinery decides to invest in new robots. The cost of a robot is $1000.Suppose the expected real interest rate is 3% and capital depreciation rate is 6%. The firmpays taxes equal to 10% of their output. What is the *tax-adjusted* user cost of capital?
- Germany allows firms to choose the depreciation method(s) of: straight-line method only. declining-balance method only. straight-line method and declining-balance method. Germany allows a very different system.A-Design Inc., a federally incorporated company in Canada, specializing in the design and manufacturing of armrests for the wheelchair industry plans to produce and sell 15,000 armrests at $50 per unit in its third year of operation and has also planned $20,000 for marketing campaigns, $100,000 for electricity, $240,000 for salaries, $300,000 for production materials, $20,000 for overhead, $24,000 for rent and $10,000 for depreciation. A-Design has a debt of $100,000 at an annual simple interest rate of 5% and a 25% income tax rate. Stock image: MSOffice GNG2101 – Introduction to product development and management for engineers and computer scientists Questions 1. Produce A-Design’s income statement at the end of their third year and determine the operating income, earnings before taxes and net income. 2. As at December 31st , 2022, A-Design Inc. presented the following financial data: $320,000 in cash, $100,000 for inventory, $580,000 in equipment, $500,000 in bank loans, $300,000 in…You are building guest huts at a holiday resort, and you need to choose whether to build your huts out of straw, wood, or brick. Straw is the cheapest but depreciates the most quickly; brick is the most expensive but depreciates least; wood is intermediate. Assume that all types of huts are equally picturesque/functional. They differ only in terms of durability. The cost (and depreciation rates) of the different hut types is: - Brick: £3,500 (10% depreciation) - Wood: £3,000 (15% depreciation) - Straw: £2,500 (20% depreciation) a) The interest rate is 5%, which type of hut should you buy? b) The interest rate is 20%, which type of hut should you buy? c) Intuitively, why were the answers for parts (a) and (b) different? Explain in words.