Compute the interest paid on a 4-year lease for a $27,671 car if the annual rate of depreciation is 12% and the lease's annual interest rate is 4.3%.
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Compute the interest paid on a 4-year lease for a $27,671 car if the annual rate of
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- Compute the interest paid on a 3-year lease for a $26,738 car if the annual rate of depreciation is 16% and the lease's annual interest rate is 4.8%. Round your answer to the nearest dollar.A crane rental company has acquired a new heavy-duty crane for $280,000. The company calculates depreciation on this equipment on the basis of number of rentals per year, and the salvage value of the crane at the end of its 12-year life is $40,000. If the crane is rented an average of 133 days per year, what is the depreciation rate per rental? The depreciation is per day of rent. (Round to the nearest dollar.)A builder paid $120,000 for a house and lot. The value of the land was appraised at $65,000, and the value of the house at $55,000. The house was then torn down at an additional cost of $8,000 so that a warehouse could be built on the lot at a cost of $50,000. What is the total value of the property with the warehouse? For depreciation purposes, what is the cost basis for the warehouse?
- Concepcion Industries paid $308,000 in federal taxes last year. If business expenses and depreciation charges were $345,000, what were their gross sales for the year?A printing machine initially costs ₱169,000. It can be sold for ₱15,000 at the end of its 12-year useful life.Using the double declining balance method, what is the depreciation charge of the machine at the end of the second year of its useful life?A miniature building company named Tiny Touches purchased a 3D printer which costs $250,000. It is expected to last for 15 years and at the end of its useful life, it will cost $25,005 Find the annual depreciation if it’s depreciation using sinking fund method at 7%
- 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…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?What is the depreciation rate dt each year t for an asset that has a 5-year recovery period and is straight line depreciated?
- Compare the different depreciation methods.? Give an example of how companies depreciate their plant assets under each method?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