A machine purchased for P315374 has a depreciable life of 7 years, and it has a terminal book (salvage) value of P12974 at the end of its depreciable life. With the straight-line method of depreciation, what is the asset's book value at the end of year 4?
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- 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 book value at the end of the 1st year? 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).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).A set of Wire Bond machine costs $500,000. This amount includes freight and installation charges estimated at 10% of the original price. If the machine shall be depreciated over a period of 10 years with a salvage value of $5,000, what is the annual depreciation charge and the book value at the end of 7 years?
- A man bought a machine for $ 535705 six years ago. It has a salvage value of $ 36957 four years from now. He sold it now for $ 46847. What is the sunk cost or the value of the machine that the man lost if the depreciation method used is a Sum of the Years' Digit method?An asset purchased for $50,000 has a depreciable life of 5 years, and it has a terminal book (salvage) value of $5,000 at the end of its depreciable life. With the straight-line method of depreciation, what is the asset’s book value at the end of year 3?Sean purchased an appliance that costs $8,850, has a life of 10 years and a salvage value of $500.Using straight line method:a.) Determine the book value at the end of the fourth year.b.) Determine the total depreciation at third year.c.) Find the depreciation at the 5th year
- You must evaluate the purchase of a spectrometer for the R&D department. The base price is $140,000, and it would cost another $30,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 4 year class and would be sold after 4 years for $60,000. The applicable depreciation rates are 33%, 45%, 15% and 7%. The equipment would require an $8000 increase in net operating working capital. The project would have no effect on revenues, but it should save the firm $50,000 per year before-tax labour costs. The firm's marginal federal-plus state tax rate is 40%. QUESTION:W Whatare the project's annual cash flows in Years 1, 2,3 and 4?An equipment costs $4433082 with the estimated salvage value of $542566 at the end of 10 years. What is the annual depreciation cost by sinking fund method at 3.8% interest? Round your answer to 2 decimal places. Add your answerThe Dauten Toy Corporation currently uses an injection molding machine that was purchased prior to the new tax legislation. This machine is being depreciated on a straight-line basis, and it has 6 years of remaining life. Its current book value is $2,400, and it can be sold for $2,600 at this time. Thus, the annual depreciation expense is $2,400/6 = $400 per year. If the old machine is not replaced, it can be sold for $500 at the end of its useful life. Dauten is offered a replacement machine which has a cost of $8,000, an estimated useful life of 6 years, and an estimated salvage value of $800. The replacement machine is eligible for 100% bonus depreciation at the time of purchase. The replacement machine would permit an output expansion, so sales would rise by $800 per year; even so, the new machine's much greater efficiency would cause operating expenses to decline by $1,000 per year. The new machine would require that inventories be increased by $2,500, but accounts payable would…
- Calculate the expected hourly pwning and operating cost for the fourth year of the operation of the twin engine scraper with the following information. Use the sum of the year's digits method of depreciation. Delivered price Tire cost $420,000 $48,000 5 years $57,000 %8 of amount to be depreciated %13 of book value (end of period) Estimated life Salvage value Investment cost for the fourth year Tax, insurance and storage for fourth year Operating conditions Rated power Fuel price Operator's wages Hours operated Equipment remains idle for 16 days during the year; 1 year=52 weeks=365 days Cost of special items Severe 580 hp $5.18/gallon $28.00/hour 5 days a week and 11 hours per day $24.02/hourThe Dauten Toy Corporation uses an injection molding machine that was purchased prior to the new tax legislation. This machine is being depreciated on a straight-line basis, and it has 6 years of remaining life. Its current book value is $2,100, and it can be sold for $2,600 at this time. Thus, the annual depreciation expense is $2,100/6 = $350 per year. If the old machine is not replaced, it can be sold for $500 at the end of its useful life. Dauten is offered a replacement machine which has a cost of $9,000, an estimated useful life of 6 years, and an estimated salvage value of $800. The replacement machine is eligible for 100% bonus depreciation at the time of purchase. The replacement machine would permit an output expansion, so sales would rise by $800 per year; even so, the new machine's much greater efficiency would cause operating expenses to decline by $1,000 per year. The new machine would require that inventories be increased by $2,500, but accounts payable would…A telephone company purchased a microwave radio equipment fo P6,000,000.00. Freight and installation charges amounted to 3% of the purchase price. If the equipment shall be depreciated over a period of 8 years with a salvage value of 5%, determine the depreciation charge during the fifth year using sum-of-the-years-digits method. Use 3 decimal places.