O 12 O B O A piece of newly purchased Industrial equipment costs $968,662.00 and is classified as a seven-year property under MACRS. What is the book value of this piece of equipment at the end of year 37 Submit Answer format: Currency: Round to: 2 decimal places. Show Hint A firm purchases a new work cell for $360,489.00. The asset will be depreciated using a 3-year MACRS schedule. What is the book value of the asset after the third year? (Assume that there is no depreciation allowed at year 0) Submit Answer format: Currency: Round to: 2 decimal places. Show Hint A firm buys a piece of equipment for $115,926.00 and will straight-line depreciate it to zero over five years. If the tax rate is 40,00 %, what is the present value of the depreciation tax shield if the cost of capital is 11.00% ? Submit Answer format: Currency: Round to: 2 decimal places. Show Hint
O 12 O B O A piece of newly purchased Industrial equipment costs $968,662.00 and is classified as a seven-year property under MACRS. What is the book value of this piece of equipment at the end of year 37 Submit Answer format: Currency: Round to: 2 decimal places. Show Hint A firm purchases a new work cell for $360,489.00. The asset will be depreciated using a 3-year MACRS schedule. What is the book value of the asset after the third year? (Assume that there is no depreciation allowed at year 0) Submit Answer format: Currency: Round to: 2 decimal places. Show Hint A firm buys a piece of equipment for $115,926.00 and will straight-line depreciate it to zero over five years. If the tax rate is 40,00 %, what is the present value of the depreciation tax shield if the cost of capital is 11.00% ? Submit Answer format: Currency: Round to: 2 decimal places. Show Hint
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE
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Step 1: MACRS Depreciation Schedule:
VIEWStep 2: 1. The book value of the equipment at the end of year 3 is as follows:
VIEWStep 3: 2. The book value of the network cell at the end of year 3 is as follows:
VIEWStep 4: 3. Calculate the present value of depreciation tax shield as follows:
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