Solve it correctly and completely. The manufacturer's suggested retail price (MSRP) for a particular car is $24,975and it is expected to be worth $19,563 in 2 years.(a) Find a linear depreciation function for this car.(b) Estimate the value of the car 5 years from now.(c) At what rate is the car depreciating?.....(a) What is the linear depreciation function for this car?f(x) =|(Simplify your answer. Do not include the $ symbol in your answer.)(b) What is the estimated value of the car 5 years from now?$(c) At what rate is the car depreciating?The car is decreasing in value an average of $ a year.

In economics, depreciation refers to the loss of value of an asset over time. The value of…

Answered: The manufacturer's suggested retail…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Classic straight line depreciation of a $100,000 asset takes place over a 5-year recovery period. If the salvage value is 15% of first cost, the depreciation charge for year 3 is closest to: (a) $17,000 (b) $20,000 (c) $24,000 (d) $28,000
An engineer with Accenture was asked by her client to help understand the difference between DDB and 150% DB depreciation. Answer his questions if original (B) = $215,000, depreciable life (n) = 12 years, and salvage value (S) = $33,000. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Which of the two methods, when calculated correctly considering S = $33,000, write off more of the first cost over the 12 years? Multiple Choice DB method DDB methFinal del formulario
A piece of equipment has a first cost of $399,000. Annual operating and maintenance cost are estimated to be $13,280. Salvage is estimated to be $77,000 after a life of 12 years. Calculate the depreciation in year 7 using (a) straight line depreciation, and (b) MACRS.
AN EQUIPMENT WAS PURCHASED FOR P500,000.00. END OF LIFE COST AFTER 25 YEARS IS P100,000.00. FIND THE CUMULATIVE DEPRECIATION FOR THE FIRST 3 YEARS USING STRAIGHT LINE METHOD.
An asset purchased for $50,000 has a depreciable life of 5 years, and it has a terminal book (salvage) value of $5,000 at the end of its depreciable life. With the straight-line method of depreciation, what is the asset’s book value at the end of year 3?
A pump costs $7000 has a life of 5 years with no salvage value. What is the SL depreciation amount for each year? Assume the depreciation will take over the entire life.
A machine is bought P420,000 with an economic life of 6 years and a salvage value of P50,000.The cost is 12% per year. if the first year depreciation is P105,714,what method of deprecation was used?
A construction equipment costing 630,000 has a life of 10 years using the sum of years digit method, total depreciation at the end of 4 years is 376,995.05. Determine the salvage value.vvvv
If the value of machinery is $50000 and the company follows the straight-line method of depreciation, assuming useful life of the asset as 5 years and salvage value as $10000 then what will be the yearly depreciation charge
You have started a business and purchased a new truck (asset class 00.22). The cost basis for depreciation purposes is $175,000. Salvage value at year six is $20,000. ***Assume it will be depreciated under the GDS: a. What is the MACRS depreciation in the third year? b. What is the cumulative depreciation through the end of year three? C.What is the BV at the end of third year if the equipment is disposed of at that time? d. What will be the gain(loss) for tax if you sell the equipment for $40,000 at the end of year three?
Equipment associated with manufacturing small railcars had a first cost of $180,000 with an expected salvage value of $30,000 at the end of its 5-year life. The revenue was $620,000 in year 2, with operating expenses of $98,000. If the company’s effective tax rate was 36%, what would be the difference in taxes paid in year 2 if the depreciation method were straight line instead of MACRS? The MACRS depreciation rate for year 2 is 32%.
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

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