An asset purchased for $100,000 with S = $20,000 after 5 years was depreciated using the 5-year MACRS rates. Expenses averaged $18,000 per year and the effective tax rate is 30%. The asset was actually sold after 5 years of service for $22,000. MACRS rates in years 5 and 6 are 11.52% and 5.76%, respectively. The after-tax cash flow from the sale is closest to: (a) $27,760 (b) $17,130 (c) $26,870 (d) $20,585

Q: An industrial plant bought a generator set for P90,000. Other expenses including installation…

A: cost of Generator = 90,000 Installation Cost = 10,000 Therefore Book Value at starting = 90,000 +…

Q: A manufacturer of aerospace products purchased three flexible assembly cells for $500,000 each.…

A: Hello, thank you for the question. Since there are multiple sub-part questions asked here, only the…

Q: The taxable income should include the difference between salvage value and book value of an asset…

A: Answer- Need to find- The taxable income should include the difference between salvage value and a…

Q: Goodson Healthcare purchased a new sonogram imaging unit for $300,000 and a truck body and chassis…

A: Salvage price is AN asset's anticipated value when depreciation, supported what a firm anticipates…

Q: An asset with a first cost of $300,000 is depreciated by the MACRS method using a 5-year recovery…

A: The economic value added (EVA) is a measure along with market value added to evaluate management’s…

Q: An automated assembly robot that cost $400,000 has a depreciable life of 5 years with a $100,000…

A: The cost of an automated assembly robot= $400,000 Depreciable life of the robot =5 years Salvage…

Q: After 8 years of use, the heavy-truck engineoverhaul equipment at Pete’s Truck Repair was evaluated…

A: Time period is denoted by ‘N’ and NAAR is denoted by ‘i’. Annual value of defender is $1,200. The…

Q: Consider the case of apiece of equipment costing $ 20000 and the scrap value $2000. the service life…

A: Principal Value of equipment = $20000 Salvage Value = $2000 Lifetime (n) = 5 years Therefore,…

Q: SHOW SOLUTION AND COMPUTATION An equipment cost P67,000 and has a life of 10 years and salvage…

A: Declining balance method is the method of depreciation in which depreciation is charged on the…

Q: The first cost of a machine is P1,800,000 with a salvage value of P300,000 at the end of its life of…

A: Depreciation refers to the fall in values of the assets with the passage of time. The concept sets…

Q: A motorized cultivator with a first cost of $28,000 and salvage value of 25% of the first cost is…

A: Depreciation rate can be calculated as follows:

Q: An engineer with Accenture was asked by her client to help understand the difference between DDB and…

A: The difference between 150% DB method and DDB is the times of depreciation rate that is levied on.…

Q: Problem 16.028: Calculate BV for different years using the MACRS method An automated assembly robot…

A: * SOLUTION :-  Given , The initial cost = $ 368000. * The Book value after 3 year is = 368000 × (1 -…

Q: A currently-owned asset has B = $150,000, S = $95,000, and a 10-year depreciable life. The book…

A: Given information: Depreciation value for 4 years can be written as follows:

Q: An asset purchased for $50,000 has a depreciable life of 5 years, and it has a terminal book…

A: Salvage value is an asset's anticipated book value after depreciation, based on what a firm…

Q: ctors Co. owns earth moving equipment that cost P90,000. After 8 years it will have an estimated…

A: Given   Cost of equipment = 90000 P   Time = 8 years   Salvage value = 18000 P   Depreciation method…

Q: Gisele is performing a make/buy study involving the retention or disposal of a 4-year-old machine…

A: Depreciation rate can be calculated as follows: Using double-declining balance method, the book…

Q: Under the General Depreciation System (GDS) of asset classification, any asset that is not in a…

A: Depreciation is used to show the fall in the value of assets over time. There are many ways to…

Q: A piece of equipment purchased at a cost $25 000 generated new income of $80,000 per year, witha…

A: Depreciation means a continuous fall in the value of an asset due to its use, wear and tear.

Q: A plant manager for a fiber optics cable manufacturing company knows that the remaining capital…

A: The first cost (FC) is $80,000. Depreciation lifer (n) is 5. Salvage value (SV) is 25 percent to the…

Q: The market value of a presently owned machine lin a wind turbine manufacturing plant is $130,000. It…

A: * SOLUTION :-  (2) Given that , The market value is  = $130000. Annual operating cost is = $63000.…

Q: A machine is purchased for P600,000 with a salvage value of P 85,000 after 25 years. What is the…

A: Machine cost = 600000 Salvage value = 85000 Life of asset = 25 years Depreciation = cost  - salvage…

Q: Estimate the CFAT for a company that has taxable income of $120,000, depreciation of $133,350, and…

A: Cash flow after taxes (CFAT) is an important measure of cash flow that takes into account the impact…

Q: Doja Products placed a new machine into production 3 years ago. It had an installed cost of…

A: Given:- Installed cost of machine=$100,000 Life=5 years Salvage=$20,000 Depreciation amount for year…

Q: An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the…

A: Depreciation refers to the decreasing value of asset over the period of time due to the usage.

Q: A new drilling mud pump was purchased and placed in service by a petroleum drilling company. Its…

A: Given; Initial cost= $250000 Salvage value= $15000 Life= 15 years

Q: An automated assembly robot that cost $362,000 has a depreciable life of 5 years with a $90,000…

A: The cost of an automated assembly robot= $362000 Depreciable life of the robot =5 years Salvage…

Q: Labor costs, materials, all direct and indirect costs, and facilities and productive equipment with…

A: Depreciation is the value of used asset. It is simple giving some cost to a good over its useful…

Q: Reliant Electric Company has erected a large portable building with a first cost of $255,000 and an…

A: a. First cost (FC) is $255,000. Salvage value (SV) is $50,000. Time period (n) is 25. The book value…

Q: Software and hardware for optimizing cell design of robotic picking lines have an installed cost of…

A: Initial cost = $ 78000 N = 5 year Value after 5 year, Salvage value = $0 DDB method Formula for…

Q: A touch-sensitive assembly robot that costs $300,000 had a depreciable life of 5 years with an…

A: The cost of the touch-sensitive assembly robot is given to be $300,000 in the economy. The…

Q: a construction equipment costing 630,000 has a life of 10 years using the sum of years digit method,…

A: A construction equipment costing 630,000. Life of 10 year. Total depreciation at the end of 4 years…

Q: The after-tax analysis for a $60,000 investment with associated gross income minus expenses (GI - E)…

A: If initial value, P and salvage value, S is nil, then the equation is : CFAT = (GI-E) - [(GI-E)-D] x…

Q: 1. Mr. A purchased a new service van. The van is depreciated over a 10-year period with a salvage…

A: In Excel, we calculate DDB depreciation  by using formula:  =DDB (cost, salvage, life, period,…

Q: quipment associated with manufacturing small railcars had a first cost of $170,000 with an expected…

A: Depreciation as per straight line method =[cost-salvage]/useful life                             = […

Q: An asset that is book-depreciated over a 5-year period by the straight line method has C3 = P…

A:

Q: An oil refinery has decided to purchase some new drilling equipment for $440,000. The equipment will…

A: Equipment cost = 440000 Time = 7 years Salvage value = 18000

Q: A coil winding and unwinding machine that costs $32,000 has a life of 9 years with a $4,000 salvage…

A:

Q: Hempstead Industries has a new milling machine with B = $110,000, n = 10 years, and S = $10,000.…

A: The book value refers to the value at which the asset is posted in the company’s financial…

Q: Bison Gear and Engineering of St Charles, IL, makes sensorless and brushless dc gear motors suited…

A: Depreciation rate under 5-year recovery period:

Q: XERCISE-3 EPRECIATION AND DEPLETION A tractor costs P800,000 and whose salvage value is P40,000…

A: Rate of depreciation =100/10=10% 1st year depreciation =800,000*10%=80,000 2nd year depreciation…

Q: Freeman Engineering paid $40,000 for specialized equipment for use with their new global positioning…

A: A depreciation scheme used for tax reasons in the United States is the modified accelerated cost…

Q: A mining corporation purchased $120,000 of production machinery and depreciated it using 40% bonus…

A: The time value of money refers to the concept that the money you have now is worth more than the…

Q: Kobi Technologies book-depreciated an asset at $27,500 per year for 4 years using the straight line…

A: a. Salvage value can be calculated by using the following formula:

Q: Some seed cleaning equipment was purchased in 2009 for $8,500 and is depreciated by the double…

A: The double declining balance depreciation (DDB) methodology, additionally called the reducing…

Q: Cebu Pacific purchased a new aircraft engine diagnostics equipment for its maintenance support…

A: Depreciation refers to two aspects of the one concept: first, is the actual decrease in fair value…