An automotive manufacturing company decided to buy a GPU computer and associated computer hardware for $12,000. There will be no salvage value for this equipment. Please create the following depreciation schedules. a) Straight line b) Double Declining Balance c) Sum of Year's digit's d) MACRS (because this is a computure use the 5 year property schedule
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- Sean purchased an appliance that costs $8,850, has a life of 10 years and a salvage value of $500.Using straight line method:a.) Determine the book value at the end of the fourth year.b.) Determine the total depreciation at third year.c.) Find the depreciation at the 5th yearA telephone company purchased a microwave radio equipment fo P6,000,000.00. Freight and installation charges amounted to 3% of the purchase price. If the equipment shall be depreciated over a period of 8 years with a salvage value of 5%, determine the depreciation charge during the fifth year using sum-of-the-years-digits method. Use 3 decimal places.Big Sky Mining Company must install $1.5 million of new machinery in its Nevada mine. It can obtain a bank loan for 100% of the purchase price, or it can lease the machinery. Assume that the following facts apply: The machinery falls into the MACRS 3-year class. (The depreciation rates for Year 1 through Year 4 are equal to 0.3333, 0.4445, 0.1481, and 0.0741.) Under either the lease or the purchase, Big Sky must pay for insurance, property taxes, and maintenance. The firm's tax rate is 25%. The loan would have an interest rate of 14%. It would be nonamortizing, with only interest paid at the end of each year for four years and the principal repaid at Year 4. The lease terms call for $420,000 payments at the end of each of the next 4 years. Big Sky Mining has no use for the machine beyond the expiration of the lease, and the machine has an estimated residual value of $200,000 at the end of the 4th year. What is the cost of owning? Enter your answer as a positive value. Do not…
- An automated assembly robot that cost $400,000 has a depreciable life of 5 years with a $100,000 salvage value. The MACRS depreciation rates for years 1, 2, and 3 are 20.00%, 32.00%, and 19.20%, respectively. What is the book value at the end of year 3? Year 5? Year 6?Using the double declining balance depreciation method for an asset purchased at the start of 1019 w/an annual cost of $85,000, a salvage value of $2,500, and a depreciable life of 12 years, the book value at the end of 2023 is most nearly waht amount? a. $40,990 b. $36,238 c. $34,160 d. 28,500 e. $23,720 Please use excel and show formulas.Malu Luigi Company makes an internal policy that for every new machine purchased, the annual depreciation cost should not exceed 15% of the first cost and should cost nothing at the end of its life. Determine the service life of brand new P 500,000 machine using SOYD.
- A machine worth 800,000 is brought from china, freight charges amount to 200,000. If the scrap value of the machine is 50,000 that occurs at the end of 17 years. (a) compute the depreciation at the end of the year11 (b) Compute the book value at the end of 11 yearsThe “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?Using DBM(declining balance method), the depreciation of a machine on the 5th year and 7th year are P22,893 and P13,503 respectively. What is the original cost of the machine? FINAL ANSWER IN 2 DECIMAL PLACE THANK YOU!
- A piece of machinery purchased at a cost of$92,000 has an estimated salvage value of $12,000and an estimated useful life of five years. It wasplaced in service on May 1st of the current fiscalyear, which ends on December 31st. The asset fallsinto a seven-year MACRS property category. Determine the depreciation amounts over the useful life.Material-handling equipment used in the manufacture of grain products (MACRS-GDS 10-year property) is purchased and installed for $180,000. It is placed in service in the middle of the tax year. If it is removed just before the end of the tax year approximately 4.5 years from the date placed in service, determine the depreciation deduction during each of the tax years involved using MACRS-GDS allowances. ———————- Repeat the previous problem if the material-handling equipment is removed just after the tax year, again using MACRS-GDS allowances.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