Complete the last four columns of the table below using an effective tax rate of 40% for an asset that has a first cost of$20,000, no salvage value, and a 3-year recovery perlod.Use MACRS depreciation.Estimates, $Estimates, $Estimates, $Estimates, $Estimates, $Estimates. $ТахesEstimates, $CFATYearGIP.OETI0.-20-20110-21.33 O747 O2.1343.17-34.100.-53.6

Answered: Image /qna-images/answer/3b85dd01-fa06-4c2f-b0c4-ebad9bf41403.jpg

Answered: the last four columns of the table…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A factory has decided to purchase some new equipment for P600, 000. The equipment will be kept for 10 years before being sold. The estimated salvage value for depreciation purposes is to be P45,000. Using straight line method, what is the annual depreciation on the equipment? a. P55, 500 b. P50,000 c. P51,500 d. P52, 500
A company bought equipment worth $53,000 and paid $1,500 for freight and delivery charges to the site. The equipment has a useful life of 10 years with a salvage value of $5,000 at the end of life. Assuming interest is 6%, determine the annual depreciation cost by sinking fund method. a. $ 3,748.65 b. $3,755.46 c. $ 3,724. 83 d. $3,713.92
An auto company purchase a new truck for their transportations at a price of $350,000. The company expects to use the truck years. expected salvage value of the truc k is $50,000 after the end of its tenth years of useful life. Use the SOYD method of depreciation to calculate the By of the truck after 2 year? A: $54,545 B: $246,394 C: $249,091 D: $103,636
Compute the declining-balance depreciation schedule for an asset with thefollowing data:Cost of the asset. I $90.000Useful life. N 7 yearsSalvage value, S $ 10,000
The initial investment in the equipment needed for the project is $50,000 for a duration of 10 years. Salvage is estimated at $5,000. Calculate the depreciation charges and book values for year three of the asset using SL? O a. $6400, $25600 O b. $7200, $28800 O c. $728, $47784 O d. $4500, $36500
Calculate the depreciation value during the first year using the Declining Balance method of a CCTV system worth $20000 with no salvage value using 200% declining balance which depreciates over 5 years. a. $10000 O b. $12000 O c. $6000 d. $8000
3. An investment of $180,000 with a salvage value of $30,000 in 10 years can reduce annual operating cost by $36,000. Use MACRS with depreciation life of 5 years and effective tax of 38% to calculate the present worth of ATCF. MARR= 10%
Question 39 An electronios balance costs P89,000 and has an estimaled salvage value of Po 000 al the end of its 8 years ifetime. What would be the depreciation after three years, using the sum of the years digit in solving for the depreciation? Express your answer in whole number K< Question 39 of 56
2. Momhil Inc. bought a professional coffee machine costing 2100,000.00.0ver its useful life it is estimated that it can process 5,000kgs of coffee or 200,000 servings. Entity can salvage the machine 25,000 at the end of useful life. Calculate the depreciation for this year if the entity is using unit of production method and it has: a) process 200 kg of coffee, b) served 15,000 www customers. NOTE: shuld be Write formula before answer wwwwwwww
Find the depreciation for the sixth year using MACRS cost-recovery rates for the property placed in service at midyear. The property is a 10-year property and was purchased for $113,206. Click the icon to view a table of MACRS rates. The depreciation is $(Round to the nearest cent as needed.)
The depreciation schedule for certain equipment has been arrived at by various methods. The estimated salvage value of the equipment at the end of its 7 years useful life is $366. Identify the resulting depreciation schedules. YEAR I || 1 2 3 4 5 6 7 IV $1335 2336.25 2775 3632 $1335 2002.5 1982 2273 $1335 1668.75 1416 1423 $1335 1335 1011 891 $1335 1001.25 722 558 $1335 667.5 515 349 $1335 333.75 368 219 Which scheme represents DDB depreciation and how much is the first year depreciation? a. III, $2775 O b. 1, $1335 O c. IV, $3632 O d. II, $2336
A project capitalized for P 2,850,000 invested in depreciable asset will earn a uniform annual revenue of P 1,650,000 for 10 years. The costs for operation and maintenance total P 725,000 a year, and taxes and insurance will cost 3% of the first cost each year. The company expects its capital to earn 14% before income taxes. *** Type the letter of the correct answer. Using ROR method 1. The depreciation cost is: a) P 546,383.59 2. The total annual cost is: a) P 957,883.59 3. The rate of return is: • Using AW method 5. The annual revenue is: a) 44.92% 4. Is this a desirable investment? a) NO b) YES a) P 1,750,000 6. The total annual cost is: a) P 1,755,883.59 7. Annual worth is: b) P 147,383.59 a) P 293,116.41 8. Would you recommend a) NO b) P 1,356,883.59 b) 38.85% b) P 3,240,000 b) P 1,543,606.94 b) - P 105,883.59 investing? b) YES c) P 285,000.00 c) P 1,144,606.94 c) 24.28% c) MAYBE c) P 2,429,600 c) P 1,356,883.59 c) P 155,500.00 c) MAYBE d) P 334,106.94 d) P 1,095,500.00 d) 22.46%…

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