Question

A company uses MACRS depreciation.   It has decided to purchase a mainframe computer and would like...

A company uses MACRS depreciation.   It has decided to purchase a mainframe computer and would like to know the depreciation schedule.   You have the following data:

First cost = $550,000.

Salvage Value = $50,000.                             

Property Class =   5-Year.

The book value at the end of year 4 is given by the following.

Group of answer choices

$84,375

$67,342

$25,687

$153,000

$95,040

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
tinney​ & Smyth Inc. is considering the purchase of a new batch​ polymer-bonding machine for producing...
tinney​ & Smyth Inc. is considering the purchase of a new batch​ polymer-bonding machine for producing Crazy​ Rubber, a​ children's toy that is​ soft, pliable but also bouncy. The machine will increase EBITDA by $275,000 per year for the next two years. Assume that operating cash flows occur at the end of each year. The​ machine's purchase price is $305,000 and the salvage value at the end of two years is $67,100.The machine is classified as 3-year property. To run...
Suarez Company uses the straight-line method of depreciation. The company purchased a computer system on January...
Suarez Company uses the straight-line method of depreciation. The company purchased a computer system on January 1, Year 1, for $1,600,000 with an expected life of six years and a salvage value of $130,000. Assuming the computer is sold on July 1, Year 3 for $1,000,000 cash, prepare the journal entries to record depreciation for the first 6 months of Year 3 and the sale of the computer. Can u please put it in a chart so I know how...
MACRS with Trade-In: In May 2011, your company traded in a computer and peripheral equipment, used...
MACRS with Trade-In: In May 2011, your company traded in a computer and peripheral equipment, used in its business, that had a BV at that time of $25,000. A new, faster computer system having a fair market value of $300,000 was acquired. Because the vendor accepted the older computer as a trade-in, a deal was agreed to whereby your company would pay $225,000 cash for the new computer system. a. What is the property class life and recovery year for...
Suarez Company uses the straight-line method of depreciation. The company purchased a computer system on January...
Suarez Company uses the straight-line method of depreciation. The company purchased a computer system on January 1, Year 1, for $1,600,000 with an expected life of six years and a salvage value of $130,000. Assuming the computer is sold on July 1, Year 3 for $1,000,000 cash, prepare the journal entries to record depreciation for the first 6 months of Year 3 and the sale of the computer.
The Summit Petroleum Corporation will purchase an asset that qualifies for three-year MACRS depreciation. The cost...
The Summit Petroleum Corporation will purchase an asset that qualifies for three-year MACRS depreciation. The cost is $200,000 and the asset will provide the following stream of earnings before depreciation and taxes for the next four years Year 1 - $ 98,000 Year 2 - $119,000 Year 3 - $50,000 Year 4 - $48,000 The firm is in a 36 percent tax bracket and has a cost of capital of 7 percent. a. Calculate the net present value. b. Under...
Highlight Company is considering the purchase of the following computer equipment, which is considered 5-year property...
Highlight Company is considering the purchase of the following computer equipment, which is considered 5-year property for tax purposes: Acquisition cost $420,000 Annual cash flow $140,000 Annual operating costs $ 31,000 Expected salvage value $ 0 Cost of capital 11% Tax rate 35% Highlight Company plans to use Modified accelerated cost recovery system (MACRS) and keep the computer equipment for seven years.What would the MACRS deduction in Year 1 be? (Round your answer to the nearest dollar.)
Foley Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is...
Foley Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. 2020    July     1     Purchased a computer from the Computer Center for $1,900 cash plus sales tax of $150, and shipping costs of $50.             Nov.    3     Incurred ordinary repairs on computer of $140.             Dec. 31     Recorded 2020 depreciation on the basis of a four-year life and estimated salvage value of...
Sale of an asset Suarez Company uses the straight-line method of depreciation. The company purchased a...
Sale of an asset Suarez Company uses the straight-line method of depreciation. The company purchased a computer system on January 1, Year 1, for $1,600,000 with an expected life of six years and a salvage value of $130,000. Assuming the computer is sold on July 1, Year 3 for $1,000,000 cash, prepare the journal entries to record depreciation for the first 6 months of Year 3 and the sale of the computer.
Find the book value for the asset shown in the accompanying​ table, assuming that MACRS depreciation...
Find the book value for the asset shown in the accompanying​ table, assuming that MACRS depreciation is being used LOADING... . Asset Installed cost Recovery period ​(years) Elapsed time since purchase ​(years) A $ 841 comma 000$841,000 5 22 The remaining book value is $____ ​(Round to the nearest​ dollar.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Copy to Clipboard + Open in Excel + Percentage by recovery​ year* Recovery year 3 years 5...
4. At the beginning of the fiscal year, G&J Company acquired new equipment at a cost...
4. At the beginning of the fiscal year, G&J Company acquired new equipment at a cost of $99,000. The equipment has an estimated life of five years and an estimated salvage value of $7,000. (a) Determine the annual depreciation (for financial reporting) for each of the five years of estimated useful life of the equipment, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by using (a.1)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT