A precision five-axis CNC milling machine costs $200,000, and it will be scrapped after 10 years.Compute the book value and depreciation using. Plot the Number of Years (x-axis) and BookValue (y-axis) for all the methods shown below, except Bonus Depreciation (in one graph).Please use different colors and indicate which line corresponds to which depreciation method.(a) straight-line depreciation(b) double declining balance depreciation(c) 150% declining balance depreciation(d) 100% bonus depreciation(e) MACRS depreciation

A) Straight-Line Method: In the straight-line method, depreciation is calculated based on the…

Answered: A precision five-axis CNC milling…

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 company purchased new mining equipment in year 2018 by paying $400,000 cash. The company plans to keep the equipment for several years and use MACRS-GDS depreciation for tax purposes. Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). Calculate the depreciation that the company claimed on the asset for year 2 of ownership. A. $48,980 B. $34,980 C. $17,840 D. $69,960 E. $97,960 Calculate the book value of the asset at the end of year 2. ○ A. $365,020 B. $293,860 OC. $209,900 OD. $244,880 O E. $174,920
Create a cashflow diagram or table. A European manufacturing company has new equipment with a first cost of 12,000 euros, an estimated salvage value of 2,000 euros, and a recovery period of 8 years. Use the SYD (sum of years-digits) method to tabulate annual depreciation and book value.
If a condensing unit was bought at 50,000 having a useful life of 5 years and a salvage value of 10,000, what is the annual depreciation? Use straight line depreciation. Your answer should only be a REAL NUMBER with NO UNITS and NO COMMAS. Round off to nearest 2 decimal places (e.g. 2500.36).
The cost of a certain asset is $3,000, its life is 6 years and scrap value is $500. Find the annual rate of depreciation under constant percentage method and construct the depreciation schedule.
Use MACRS to compute the depreciation schedule for office furniture purchased for $80,000 (use the 7 yr depreciation schedule). Assume salvage value is $10,000. Please show how you did the work for each year.
Carl is curious about the original cost of the digital imaging equipment he uses at the First National Bank. Accounting cannot tell him the cost, butthey know the annual depreciation over an 8-year period is $18,900 per year. If all items are straightline depreciated and the salvage is always 25% of the first cost, estimate the original cost.
Office equipment whose initial cost is $100,000 has an estimated actual life of 6 years, with an estimated salvage value of $10,000. Prepare tables listing the annual costs of depreciation and the book value at the end of each 6 years, based on straight-line, sum-of-years’-digits, and MACRS depreciation. Please use spreadsheet functions for the depreciation methods.
A company purchased new mining equipment in year 2018 by paying $400,000 cash. The company plans to keep the equipment for several years and use MACRS-GDS depreciation for tax purposes. Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (k). Calculate the depreciation that the company claimed on the asset for year 2 of ownership. OA. $48,980 OB. $34,980 OC. $17,840 O D. $69,960 ○ E. $97,960 Calculate the book value of the asset at the end of year 2. OA. $365,020 OB. $293,860 OC. $209,900 More Info O D. $244,880 O E. $174,920 C More Info GDS Recovery Rates (r) for the Six Personal Property Classes Recovery Period (and Property Class) Year 3-year 5-year 7-year³ 10-year² 15-yearb 20-yearb 1 0.3333 0.2000 0.1429 0.1000 0.0500 0.0375 2 0.4445 0.3200 0.2449 0.1800 0.0950 0.0722 3 0.1481 0.1920 0.1749 0.1440 0.0855 0.0668 4 0.0741 0.1152 0.1249 0.1152 0.0770 0.0618 0.1152 0.0893 0.0922 0.0693 0.0571 0.0576 0.0892…
The cost of a certain machinery is $30,000. Its useful life is 6 years, and its resale value is $5,000. Estimate the book value of the machine after 2 years, using constant percentage depreciation method. Tabulate the annual depreciation amounts and the book value of the equipment at the end of each year.
Question 5 (Depreciation): You purchase a Lexus that has a first cost of 300,000 with 200,000 Salvage value after 4 years? Find the depreciation D. Find the book value of the car after 2 years. D= BV2= Page 6 of 6
Question One ( A drilling rig was purchased for 1.8 million dollars. It has an estimated life of 10 years, and the salvage value at that time is expected to be $500,000. After 5 years what will be the total depreciation charged for a) straight line depreciation, b) sum of the years' digit depreciation.
A new $15.000 car will epreciane over 5 years based on SYD method of depreciation. The fiest years depreciation is 3,400. Find the end of year book value for year 2 and the total depreciation for year 4 Match each item to a choice Total Depreciation (D4) Book Value (C2)

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