Question

An automated inspection system purchased at a cost of $120,000 by Kal Tech Engineering Systems was...

An automated inspection system purchased at a cost of $120,000 by Kal Tech Engineering Systems was depreciated using the MACRS method. The system was sold after 4 years for $50,000. Determine the capital recovery on this equipment.

$12,512

$37,488

$50,000

$42,376

$62,354

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:- $12,512

Explanation:-

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
Freeman Engineering paid $46,000 for specialized equipment for use with their new global positioning system/geographic information...
Freeman Engineering paid $46,000 for specialized equipment for use with their new global positioning system/geographic information system (GPS/GIS). The equipment was depreciated over a 3-year recovery period using Modified Accelerated Cost Recovery System (MACRS) depreciation. The company sold the equipment after 2 years for $4,000 when it purchased an upgraded system. Determine the amount of the depreciation recapture or capital loss involved in selling the asset. The amount of capital loss is determined to be $
Engineering Economic Analysis Question: A company purchased production equipment that cost $120,000. They used sum-ofyears’-digits depreciation...
Engineering Economic Analysis Question: A company purchased production equipment that cost $120,000. They used sum-ofyears’-digits depreciation with an estimate 5-year life and estimate salvage value of $0. The company’s total tax rate is 34%. After 5 years, the equipment was sold for $40,000. It had reduced operating costs by $32,000 a year, before taxes. Perform an after-tax net present worth analysis to determine if the purchase was satisfactory, assuming an MARR of 12%.
Sunbeam-Oster purchased high-tech equipment that was placed-in-service on December 1, 2009 at a total cost of...
Sunbeam-Oster purchased high-tech equipment that was placed-in-service on December 1, 2009 at a total cost of $21,000,000. Salvage value was estimated to be $1,150,000. The machinery will be depreciated over 12 years using the straight-line method. On January 1, 2014, Jentz spent $15,200 to overhaul high-tech equipment. After the overhaul, Jentz estimated that the useful life would be extended 4 years beyond its original useful life, and that the salvage value would be reduced to $6,500. For the year ended...
Calculating initial investment   Vastine​ Medical, Inc., is considering replacing its existing computer​ system, which was purchased...
Calculating initial investment   Vastine​ Medical, Inc., is considering replacing its existing computer​ system, which was purchased 3 years ago at a cost of $322,000. The system can be sold today for $204,000. It is being depreciated using MACRS and a​ 5-year recovery period​ (see the table. A new computer system will cost $501,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 40% tax rate on ordinary income and...
A company purchased equipment for 120,000. The company estimates a useful life of 4 years and...
A company purchased equipment for 120,000. The company estimates a useful life of 4 years and a residual value of $0. The company depreciates the equipment using the straight-line method and sold the equipment at the end of the 3rd year of use. What will the company record if the equipment is sold for 25,000?
Consider the following scenario: An engineering firm is considering switching from a manual to an automated...
Consider the following scenario: An engineering firm is considering switching from a manual to an automated machine for quality control. Under the current process: Manual inspection: Works earn $35/ hour, inspect 7 items per hour and need 16 inspectors total, working 8 hours per shift and 200 shifts a year There is a false negative of 15%, so the company actually pays workers $25/hr and sets aside $10/hr to cover cost of poor quality (considered a regular business expense) Proposed...
A firm has just purchased a new piece of equipment for $50,000.  The equipment will cost an...
A firm has just purchased a new piece of equipment for $50,000.  The equipment will cost an additional $2,000 to be delivered and installed.  Based on IRS guidelines, the equipment will be depreciated using a 3-year MACRS schedule.  The firm plans on using the equipment for three years and then selling the equipment for $15,000.  The tax rate facing the firm is 30%.  What will be the cash flow from selling the equipment in three years?
2019 Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) On March 8, 2019, Holly purchased a...
2019 Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) On March 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the building is $700,000. Holly also owns another residential apartment building that she purchased on October 15, 2019, with a cost basis of $400,000. Please access the depreciation tables. a. Calculate Holly's total depreciation deduction for the apartments for 2019 using MACRS. $ ________ Feedback MACRS allows taxpayers who invest in capital assets to write off...
The Spartan Technology Company has a proposed contract with the Digital Systems Company of Michigan. The...
The Spartan Technology Company has a proposed contract with the Digital Systems Company of Michigan. The initial investment in land and equipment will be $240,000. Of this amount, $190,000 is subject to five-year MACRS depreciation. The balance is in nondepreciable property. The contract covers six years; at the end of six years, the nondepreciable assets will be sold for $50,000. The depreciated assets will have zero resale value. Use Table 12-12. The contract will require an additional investment of $54,000...
] Burton, a manufacturer of snowboards, is considering replacing an existing piece of equipment with a...
] Burton, a manufacturer of snowboards, is considering replacing an existing piece of equipment with a more sophisticated machine. The following information is given. • The proposed machine will cost $120,000 and have installation costs of $20,000. It will be depreciated using a 3 year MACRS recovery schedule. It can be sold for $60,000 after three years of use (before tax; at the end of year 3). • The existing machine was purchased two years ago for $95,000 (including installation)....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT