Englehard purchases a slurry-based separator for the mining of the clay that costs $650,000 and has an estimated useful life of 10years, a MACRS-GDS property class of 7 years, and an estimated salvage value of $75,000 after 10 years. It was financed using a$205,000 down payment and a loan of $445,000 over a period of 5 years with interest at 10%. Loan payments are made in equalannual amounts (principal plus interest) over the 5 years.a. What is the amount of the MACRS-GDS depreciation taken in the 3rd year?Depreciation = $b. What is the book value at the end of the 3rd year?Book value = $c. Returning to the original situation, what is the amount of the MACRS-GDS depreciation taken in the 3rd year if the separator isalso sold during the 3rd year?Depreciation = $Use depreciation percentages to 2 decimal places. Round final answers to whole dollar. Tolerance is ± 50.

Name: Englehard purchases a slurry-based separator for the mining of the cl
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Description: Englehard purchases a slurry-based separator for the mining of the clay that costs $650,000 and has an estimated useful life of 10years, a MACRS-GDS property class of 7 years, and an estimated salvage value of $75,000 after 10 years. It was financed

The modified accelerated cost recovery system (MACRS) is a depreciation system used for tax purposes…

Business

Finance

a. What is the amount of the MACRS-GDS depreciation taken in the 3rd year? Depreciation = $ b. What is the book value at the end of the 3rd year? Book value = $ c. Returning to the original situation, what is the amount of the MACRS-GDS depreciation taken in the 3rd year if the separator is also sold during the 3rd year? Depreciation = $

a. What is the amount of the MACRS-GDS depreciation taken in the 3rd year? Depreciation = $ b. What is the book value at the end of the 3rd year? Book value = $ c. Returning to the original situation, what is the amount of the MACRS-GDS depreciation taken in the 3rd year if the separator is also sold during the 3rd year? Depreciation = $

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 15PB: Urquhart Global purchases a building to house its administrative offices for $500,000. The best...

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