Question

Microsoft has just completed year 3 of the 10 year life (8 years remain) of a...

Microsoft has just completed year 3 of the 10 year life (8 years remain) of a piece of equipment it originally purchased for $750,000. It is applying straight-line depreciation to this equipment. What is the book value of this equipment at the end of year 2?

Show work

Boeing has just completed year 6 of the 9 year life (3 years remain) of a piece of equipment it originally purchased for $600,000. It is applying straight-line depreciation to this equipment. If Boeing sells the equipment today for 50,000 and its tax rate is 20%, what is the after-tax cash flow from selling it?

show work

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Jones Company has just completed the third year of a​ five-year MACRS recovery period for...
The Jones Company has just completed the third year of a​ five-year MACRS recovery period for a piece of equipment it originally purchased for $300,000. a. What is the book value of the​ equipment? b. If Jones sells the equipment today for $185,000 and its tax rate is 25%​, what is the​ after-tax cash flow from selling​ it? Note​: Assume that the equipment is put into use in year 1.
The Jones Company has just completed the third year of a​ five-year MACRS recovery period for...
The Jones Company has just completed the third year of a​ five-year MACRS recovery period for a piece of equipment it originally purchased for $ 300 comma 000. a. What is the book value of the​ equipment? b. If Jones sells the equipment today for $ 177 comma 000 and its tax rate is 35 %​, what is the​ after-tax cash flow from selling​ it? Note​: Assume that the equipment is put into use in year 1. a. What is...
The Jones Company has just completed the third year of a​ 5-year diminishing value recovery period...
The Jones Company has just completed the third year of a​ 5-year diminishing value recovery period for a piece of equipment it originally purchased for $ 297 000. The depreciation rate is 40​%. a. What is the book value of the​ equipment? b. If Jones sells the equipment today for $ 80 000 and its tax rate is 30 %​, what is the​ after-tax cash flow from selling​ it? c. Just before it is about to sell the​ equipment, Jones...
Sengupta Inc. just purchased some equipment which has a depreciable life of 7 years. The equipment...
Sengupta Inc. just purchased some equipment which has a depreciable life of 7 years. The equipment cost $1,720,000 and will be used in a project with a 4 year lifespan. At the end of the project, the equipment will be sold for market value of $450,000 at the end of year 5. The equipment will be depreciated using the straight-line method. Assume the firm has a 30% marginal tax rate and the equipment will be used in a project that...
George bought a piece of equipment for $30,000. The equipment has a useful life of 4...
George bought a piece of equipment for $30,000. The equipment has a useful life of 4 years and a salvage value of $2,000 at the end of its useful life. Assume that the annual interest is 9%. 1. Calculate the book value at the end of year 2, using the straight line depreciation method. a. $18,000 b. $16,000 c. $14,000 d. $12,000 2. Calculate the present value of depreciation, using the straight line depreciation method. a. $20,756 b. $21,383 c....
When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost...
When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $51,000 and its estimated residual value is $2,000. After 3 years of straight-line depreciation, the asset’s total estimated useful life was revised from 8 years to 5 years and there was no change in the estimated residual value. The Depreciation Expense in year 4 is:
1) On Jan1 2015, Wax purchased equipment for $60000 cash, expecting it to remain in service...
1) On Jan1 2015, Wax purchased equipment for $60000 cash, expecting it to remain in service for 6 years. The corporation depreciates the equipment on a straight-line basis, with $2000 residual value. On May31 2017, the corporation sold the equipment for $18000 cash. Record both depreciation expense for 2017 and sale of the equipment on May31 2017. 2) Equipment was acquired on Jan1 2014, at a cost of $170000. The equipment was originally estimated to have a salvage value of...
An asset was purchased for $57,000 and originally estimated to have a useful life of 10...
An asset was purchased for $57,000 and originally estimated to have a useful life of 10 years with a residual value of $4,100. After two years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $1,640. a. Determine the amount of the annual depreciation for the first two years. $ b. Determine the book value at the end of Year 2. $ c. Determine the depreciation...
The ABC Co. purchased a piece of equipment for its factory for the price of $990,000....
The ABC Co. purchased a piece of equipment for its factory for the price of $990,000. The Company paid an additional $7,000 in transportation expenses to transport the equipment to its factory and an additional $28,000 to install the equipment in its assembly line. The equipment was estimated to have a useful life of 5 years and a salvage value at the end of the 5 years of $90,000. REQUIRED: Complete the depreciation tables below to show the the annual...
When originally purchased, a vehicle costing $25,020 had an estimated useful life of 8 years and...
When originally purchased, a vehicle costing $25,020 had an estimated useful life of 8 years and an estimated salvage value of $2,700. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT