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If PSK Engineering had a CFAT of $750,000,
charged
36%, what was PSK’s CFBT?
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- 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!MalMax purchased a depreciable asset. What would be the difference in total assets at the end of the first year if MalMax chooses straight-line depreciation versus double-declining-balance depreciation?Reliant Electric Company has erected a large portable building with a first cost of $255,000 and an anticipated salvage of $50,000 after 25 years. (a) Should the switch from DDB to SL depreciation be made? (b) For what values of the uniform depreciation rate in the DB method would it be advantageous to switch from DB to SL depreciation at some point in the life of the building? How does this rate compare with the DDB rate of 2/n?
- Under the General Depreciation System (GDS) of asset classification, any asset that is not in a stated class is automatically assigned a recovery period of: (a) 5 years (b) 7 years (c) 10 years (d) 15 yearsA manufacturing company makes it a policy that for every new equipment purchased, the annual depreciation cost should not exceed 25% of the first cost at any time without salvage value. Determine the length of serviceA machine costing P540,000 has a life expectancy of 12 years with a salvage value of P40,000. Using the Depreciation by Sinking Fund Method (SFM), what is the depreciation in the fourth year? Assume i=8%.
- 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 manufacturer of aerospace products purchased three flexible assembly cells for $500,000 each. Delivery and insurance charges were $35,000, and installation of the cells cost another $50,000. Solve, a. Determine the cost basis of the three cells. b. What is the class life of the cells? c. What is the MACRS depreciation in year five? d. If the cells are sold to another company for $120,000 each at the end of year six, how much is the recaptured depreciation?A contractor imported a bulldozer paying P350k to the manufacturer, freight & insurance charges amounted to P18k, permits & other exp P25k. If the contractor estimates the life of the bulldozer to be 15 years with salvage value of P30k, determine the Total depreciation at the end of 11 years using Sinking fund at 10%. a. P112,718.231 b. P121,718.231 c. P111,718.231 d. P211,718.231
- 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?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.In Straight Line depreciation, the book value at the end of the depreciable life is equal to the salvage value used to calculate the yearly depreciation amount. TRUE OR FALSE