2. Assuming a seven-year class of property, compute MACRS depreciation expense for each year of the asset's life. MACRS method MACRS Depreciation Depreciation Expense Year Rates 7-Year Original Class of Property Cost 1 $59,000 14.29% 59,000 24.49% 3 59,000 17.49% 4 59,000 12.49% 59,000 8.93% 59,000 8.92% 59,000 8.93% 8 59,000 4.46% Total
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- Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.A truck was recently purchased for 75,000 with a salvage value of 5,000 and an estimated useful life of eight years or 150,000 miles (24,000 miles per year for the first five years and 10,000 miles per year after that). Enter the new information in the Data Section of the worksheet. Again, make sure the totals for all three methods are in agreement. Print the worksheet. Save this new data as DEPREC5.An assembly line conveyor system with a 5-year life is to be depreciated by the DDB method. The conveyor units had a first cost of $30,000 with a$9000 salvage value. The annual operating cost allocated to the conveyor is $7000 per year. The book value at the end of year 2 is closest to:a. $6,480b. $10,800c. $12,400d. $18,000
- A surface mount PCB placement/soldering line is to be installed for $1,800,000. It will have a salvage value of $90,000 after 5 years. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset’s life. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset’s life using declining balance depreciation using double declining balance switching to straight line depreciation.A surface mount PCB placement/soldering line is to be installed for $1,400,000. It will have a salvage value of $70,000 after 5 years. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life. Click here to access the MACRS-GDS Table Calculator Part a Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life using declining balance depreciation using double declining balance switching to straight line depreciation. ΕΟΥ 0 1 2 3 4 5 Sum depreciation Depreciation BalanceStraight-Line, Declining-Balance, Sum-Of-The-Years'-Digits, and MACRS Methods A machine is purchased January 1 at a cost of $59,000. It is expected to serve for eight years and have a salvage value of $3,000. Required: 1. Prepare a schedule showing depreciation for each year and the book value at the end of each year using the following methods a. Straight-line
- Straight-Line, Declining-Balance, Sum-Of-The-Years'-Digits, and MACRS Methods A machine is purchased January 1 at a cost of $55,000. It is expected to serve for eight years and have a salvage value of $2,000. Required: 1. Prepare a schedule showing depreciation for each of the eight years and the book value at the end of each year using the following methods: a. Straight-line Straight-Line Method Ending Year Depreciation Book Value Annual 1 $1 3 4 7 8. b. Double-declining-balance (round to two decimal places) Double-Declining-Balance MethodStraight-Line, Declining-Balance, Sum-Of-The-Years'-Digits, and MACRS Methods A machine is purchased January 1 at a cost of $59,000. It is expected to serve for eight years and have a salvage value of $3,000. Required: 1. Prepare a schedule showing depreciation for each of the eight years and the book value at the end of each year using the following methods: a. Straight-line Straight-Line Method Annual Ending Year Depreciation Book Value 1 3 4 5 6 7 8 b. Double-declining-balance (round to two decimal places) Double-Declining-Balance Method Ending Depreciation Book Value Annual Year 2 3 4. 7 8 c. Sum-of-the-years'-digits (round to two decimal places) Sum-Of-The-Years'-Digits Method Annual Ending Year Depreciation Book Value 4 5 6.A surface mount PCB placement/soldering line is to be installed for $1,000,000. It will have a salvage value of $90,000 after 5 years. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life. Click here to access the MACRS-GDS Table Calculator Part a Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life using declining balance depreciation using double declining balance switching to straight line depreciation. EOY Depreciation Balance 1 3 4 Sum depreciation Round entry to two decimal places. The tolerance is ±10.
- ASAPA draw bench for precision forming and strengthening of carbon steel tubing has a cost of $1,110,000. It will have a salvage value of $76,000 after a useful life of 10 years. Part a Using the formulas, determine the depreciation charge for year 8 and the book value at the end of year 8 if straight-line depreciation is used. Depreciation charge: Book value: $ $build a modelA purchased machine cost $320,000, with delivery and installation charges amounting to $30,000. The declared salvage value was $50,000. Its useful life is 10 years. a) Compute the SL depreciation schedule over its useful life. b) Compute the DDB depreciation schedule over its useful life. c) Compute the MACRS depreciation schedule. Its ADR life is 12 years. d) Early in Year 4, the company changed its product mix and found that it no longer needed the machine. One of its competitors agreed to buy the machine for $110,000. Determine the loss, gain, or recapture on the sale. Use the MACRS schedule