Year 1 Year 2 Year 3 Year 4 Unit sales Sales price 4,200 4,100 4,300 4,400 $29.82 $30.00 $30.31 Variable cost per unit Fixed operating costs except depreciation Accelerated depreciation rate $33.19 $12.15 $13.45 $14.02 $14.55 $41,000 $41,670 $41,890 $40,100 33% 45% 15% 7% This project will require an investment of $25,000 in new equipment. The equipment will have no salvage value at the end of the project's four-year life. Fox pays a constant tax rate of 40%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's net present value (NPV) would be when using accelerated depreciation. Determine what the project's net present value (NPV) would be when using accelerated depreciation. (Note: Round your intermediate calculations to the nearest whole number.)

Year 1 Year 2 Year 3 Year 4 Unit sales Sales price 4,200 4,100 4,300 4,400 $29.82 $30.00 $30.31 Variable cost per unit Fixed operating costs except depreciation Accelerated depreciation rate $33.19 $12.15 $13.45 $14.02 $14.55 $41,000 $41,670 $41,890 $40,100 33% 45% 15% 7% This project will require an investment of $25,000 in new equipment. The equipment will have no salvage value at the end of the project's four-year life. Fox pays a constant tax rate of 40%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's net present value (NPV) would be when using accelerated depreciation. Determine what the project's net present value (NPV) would be when using accelerated depreciation. (Note: Round your intermediate calculations to the nearest whole number.)

Name: Year 1Year 2Year 3Year 4Unit sales4,2004,1004,3004,400Sales price$29.
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Description: Year 1Year 2Year 3Year 4Unit sales4,2004,1004,3004,400Sales price$29.82$30.00$30.31$33.19Variable cost per unit$12.15 $13.45 $14.02$14.55Fixed operating costs except depreciationAccelerated depreciation rate$41,00033%$41,67045%$41,89015%$40,1007%Thi

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 20E: (Appendix 11.1) Depreciation for Financial Statements and Income Tax Purposes Dinkle Company...

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(Appendix 11.1) Depreciation for Financial Statements and Income Tax Purposes Dinkle Company purchased equipment for 50,000. The equipment has an estimated residual value of 5,000 and an expected useful life of 10 years. Dinkle uses straight-line depreciation for its financial statements. Required: What is the difference between the companys income before taxes reported on its financial statements and the taxable income reported on its tax return in each of the first 2 years of the assets life if the asset was purchased on January 2, 2019, and its MACRS life is 5 years?
Problem 6Four, Inc. provided the following balances at the end of the current year:Wasting asset, at cost P20,000,000Accumulated depletion 2,500,000Share capital 50,000,000Capital liquidated 1,800,000Retained earnings 1,500,000Depletion based on 50,000 units at P20 per unit 1,000,000Inventory of resource deposit 100,000Required:a. Compute the maximum dividend that can be declared.b. Prepare the journal entry to record the declaration of P2,000,000 dividend.
The straight-line method Question: Cost $134,400 Estimated Residual Value $12,500 Estimated Useful Life (in years) 4 Estimated Useful Life (in working hours) 11,500 I'm doing the straight-line method for a particular question I asked earlier, I'm noticing that the depreciation expense isn't equal to the asset’s depreciable amount (When I multiply the Depreciable Amount x Depreciation Rate, 100/4 = 25%). I did all the steps, $134,400 - $12,500 = $121,900 (Depreciable Amount) $121,900/4 = $30,475 (Annual Depreciation Expense). Year Depreciation x Amount Depreciation Rate = Depreciation Expense Accumulated Depreiciation Carrying Amount 2023 $121,900 25% 30,475 2024 121,900 25% 30,475 2025 121,900 25% 30,475 2026 121,900 25% 30,475 2027 121,900 25% 30,475
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Question Content Area A machine with a cost of $69,200 has an estimated residual value of $4,463 and an estimated life of 5 years or 17,037 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method? a. $27,680.00 b. $16,608.00 c. $13,840.00 d. $25,894.80
Composite rate- 9.30% Composite life- 10.56 years The company receives P40,000 upon retirement of the machinery at the end of 5th year, debited to accumulated depreciation is P2,510,000 (P2,550,000-40,000). Question:How much is the total carrying amount of the assets at the end of the 6th year?
QUESTION 1 Kamisan Enterprise provides for depreciation of its machinery at 20% per annum on cost; it chargesfor a full year in the year of purchase but no provision is made in the year of sale/disposal.Financial statements are prepared annually to 31 December.2017January 1 Bought machine “A” RM12,000July 1 Bought machine “B” RM9,0002018March 31 Bought machine “C” RM11,0002019October 8 Sold machine “A” – proceeds RM6,400November 7 Bought machine “D” RM14,0002020February 3 Sold machine “B” – proceeds RM3,500February 5 Bought machine “E” RM9,700October 12 Exchanges machine “D” for machine “F” valued at RM8,000 Required:(a) Prepare the machinery account for the period from 1 January 2017 to 31 December 2020.(b) Prepare the provision for depreciation on machinery account, for the period from 1 January2017 to 31 December 2020.(c) The disposal of machinery accounts showing the profit/loss on sale for each year.
Problem 1Purchase price of raw materials P100,000Rebates on raw material purchases 2,000Import taxes 17,000Local taxes paid in relation to the purchase 1,500Freight-in 5,00012% VAT on the purchase price 12,000Interest expense related to the purchase 3,200Utilities used on factories…
Required information Exercise 11-3 (Algo) Depreciation methods partial periods (LO 11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260.000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service
Question 51 During 2021, equipment was sold for $468,000. The equipment cost $786,000 and had a book value of $432,000. Accumulated Depreciation–Equipment was $2,061,000 at 12/31/20 and $2,205,000 at 12/31/21. Depreciation expense for 2021 was $288,000. $576,000. $144,000. $498,000.
9. Compute for the depreciation in the first year using double declining method. a. 40,000 c. 72,000 b. 36,000 d. 80,000 10. How much is the book value of the equipment as of end of second year using output method of depreciation? a. 360,000 c. 301,500 b. 341,500 d. 230,000