You bought equipment for $110,000 3 years ago. Today you have an offer to sell your equipment for $65,000. What is the Depreciation Expense, Book Value and After-Tax Cashflow from salvage Value when using: (a) 5-Year MACRS
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- What is the depreciation each year for a trailer that cost $10,000 new, has a life of 5 years, and a salvage value of $2,00? Use straight line depreciation. What is ?the book value after 2 years1. A certain building has a salvage value of P 1 million after 50 years. Annual depreciation is Php 2 M. Using the Straight Line Method, how many years after should you sell the building for Php 30 M?Suppose you purchase a tangible asset with a book value of $700,000. The salvage value is $ 100,000. The useful life of the asset is 30 years. How much accumulated depreciation will there be (assume that you're using the "straight line" amortization method) after 10 years?
- You have bought an asset which costs $15,000. You depreciate it using the Straight Line Depreciation method. If salvage value for the asset is $3,000, and the asset’s useful life is 3 years, what is the annual depreciation?An equipment cost P60,000 today and its salvage value is P20,000 after 6 years. Calculate its depreciation at year 2 with 3.45% interest rate.Use Sinking Fund MethodAn equipment cost P60,000 today and its salvage value is P20,000 after 6 years . Calculate its depreciation at year 1 with 3.83% interest rate.Use Sinking Fund Method NOTE: Please Solve and explain! and indicate your final answer!
- a) an asset is purchased for $200,000. The estimated life is 8 years and the salvage value is $20.000.assuming the item is depreciated via straight line method, find the book of the asset at the end of 5 years? b) If one-time amount of $500 is invested at an annual interest rate of 8% (compound annually), find its future worth at the end of 20 years?1-Suppose you own restaurant. You buy a new pizza oven for $110,000. The oven can be sold for $30,000 after seven years. What is the third year's depreciation charge that you can deduct from your income using: 'Straight-line depreciation? DDB depreciation? MACRS depreciation assuming 5-year property class (use the MACRS table available on blackboard)Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5 years and a salvage value of $500 at the end of its useful life. Assume that the interest rate per year is 10%. (a) Calculate the depreciation for year 4, using DDB. O $3456 O $3640 O $3820 O $4070
- An asset is considering the purchase of a new equipment. This equipment will cost $100,000 and will be depreciated using an MACRS GDS recovery period of 7 years. The equipment is expected to have a market value of $40,000 at the end of its estimated 8-year life. What is the depreciation amount on the second year? What is the Book Value at the end of the 3rd year? Assume that the asset will be disposed of in year 3.A machine, purchased for$50,000, has a depreciable life of five years. It will havean expected salvage value of $4,500 at the end of the depreciable life. Find theyearly depreciation, Book value every year using the following methods: a. MATHESON EQUATION b. SINKING FUND METHOD ( i = 12%)for this equipment. 0. Calculating Salvage Value Consider an asset that costs $635,000 and is depreciated straight-line to zero over its eight-vear tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for S105,000. If the relevant tax rate is 22 percent, what is the aftertax cash flow from the sale of this asset? LO 2