A new car is purchased for $48,000. This cost will be allocatd equally over 6 years. This cost allocation is called depreciation. The book value of the car at any time after its purchase is its original cost minus all depreciation up to that point in time. Create a mathematica
Q: A machine having a certain first cost FC has a life of 10 years and a salvage value of 6% of the…
A: Let the first cost be x Salvage value (SV) = 0.06 Life (n) = 10 years BV at the end of 6th year =…
Q: Suppose a new car is purchased for $44,357 and depreciates by 24% over the first year of ownership.…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: An equipment costing Php 750,000 has a life expectancy of 6 years. Using the sum-of-the–year’s digit…
A: Depreciation can be defined as the non-cash expense that has a major role in financial statements.…
Q: A brand new car was bought at a cost of P1. 872 million with a scrap value when worn out of P350,…
A: Depreciation is the decrement in the value of asset due to usage, wear and tear obsolence or due to…
Q: A machine has an initial cost of P50,000 and a salvage value of P10,000 after 10 years. What is the…
A: Solution:- Calculation of depreciation and book value after 5 years of using straight line…
Q: A company purchased a van at a cost of $42,000 and expects its salvage value to be $6,000 after…
A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…
Q: The value of an automobile depreciates at the rate of 15% per year. What will be the value of an…
A: The business entity charges the depreciation expenses on their assets so that the assets in the…
Q: compute the capitalized cost of a new car worth 800,000 if it is estimated that is requires 20,000…
A: Purchase price = 800,000 Annual cost = 20,000 Salvage value = 300,000 Period = 5 Years Interest…
Q: A machine can be purchased for $60,000 and used for five years, yielding the following net incomes.…
A: Payback period refers to the time period that is required to recover the initial cost. With the help…
Q: A bulldozer was bought for ₱ 0.50M and have an estimated useful life of 10 years after which it will…
A: Straight-line depreciation expense=Cost of Asset-Scrap ValueUseful Life
Q: mainte
A:
Q: A delivery car had a first cost of $30,000, an annual operating cost of $16,000, and an estimated…
A: Annual worth consist of the annual operating cost and equivalent annual cost of first cost with…
Q: Cisco Systems is purchasing a new bar code–scanning device for its servicecenter in San Francisco.…
A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…
Q: An automated assembly robot that cost $400,000 has a depreciable life of five years with a $100,000…
A: The book value is the cost of the assets less the depreciation for the period. The depreciation is…
Q: A new machine costs $160 000, has a useful life of 10 years, and can be sold for $15 000 at the end…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: What is the depreciation deduction each year, using each of the methods below, for an asset that…
A: Depreciation is the reduction in the value of assets due to normal wear and tear, passage of time,…
Q: The La Salle Bus Company has decided to purchase a new bus for $85,000 with a trade-in of their old…
A: Straight-line depreciation is the method of depreciation where the amount of depreciation remains…
Q: If a dump truck for hauling coal has an estimated net cost of $90,000 and is expected to give…
A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due…
Q: A delivery car had a first cost of $40,000, an annual operating cost of $15,000, and an estimated…
A: The annual operating cost can be considered as an annuity where the future value will be A =…
Q: A brand new car costs P500,000 and the salvage value is 10% of the original cost after 20 years.…
A: The straight-line depreciation method gradually reduces the value of an asset over time till it…
Q: A delivery car had a first cost of $30,000, an annual operating cost of $12,000, and an estimated…
A: Present Value of periodic payment= P* (1- (1+r)^-n)/r So the annual payment is of the present…
Q: he initial book value of a new computer is $74,000 and the computer is to be depreciated…
A: According to the straight-line depreciation method, an equal amount of depreciation expense is…
Q: You have just bought a new pusher dozer for your equipment fleet. Its cost is $100,000. It has…
A: Depreciation is a decrease in the value of an asset due to various reasons like wear and tear,…
Q: An electronics balance costs P87,000 and has an estimated salvage value of P8,000 at the end of its…
A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…
Q: A firm purchases an asset for $50,000 and estimates that it will have a useful life of five years…
A: Given the following information: Cost of the asset: $50,000 useful life of the asset - 5 years…
Q: A new barcode reading device has an installed cost basis of $20,670and an estimated service life of…
A: Double declining balance method is a method which is used to determine the value of depreciation…
Q: What is the average amount invested in a machine during its predicted five-year life if it costs…
A:
Q: If B = $400,000, n = 6 years, and S is estimated at 15% of B for a new pavement recycling machine,…
A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to…
Q: A new car is sold for $ 35,000, but the next year its price is specified as 31,400. How much is the…
A: The depreciation amount is the decreased amount in fixed assets with passage of time.
Q: If the cost of the truck is OMR 30,000 and the annual depreciation expense OMR 2,000. How much will…
A: Book Value = Cost of Truck - Depreciation Expense
Q: A machine can be purchased for $150,000 and used for five years, yielding the following net incomes.…
A: Definition: Cash payback method: The cash payback period is the expected time period which is…
Q: A machine can be purchased for $150,000 and used for five years, yielding the following net incomes.…
A: Payback period: It can be defined as the time that is taken by an investment before it starts…
Q: An automated assembly robot that cost $300,000 has a recovery period of five years with an expected…
A: Depreciation recapture- It is a tax provision that powers the IRS to collect taxes on any profitable…
Q: A delivery car had a first cost of $30,000, an annual operating cost of $12,000, and an estimated…
A: Computation of the market value of two-year-old vehicle be in order for its AW value to be the same…
Q: Penny and Daughter’s construction business is considering purchasing a new Bobcat. The equipment…
A: Depreciation is the reduction in the value of assets due to normal wear and tear, passage of time,…
Q: A delivery car had a first cost of $36,000, an annual operating cost of $16,000, and an estimated…
A: As given in question : Cost of car = $36000 AOC( Annual Operating Cost) = $16000 Salvage value =…
Q: if a company is considering buying a system that costs 450,000 with an estimated 10-year life and a…
A: Annual cash outflow = incremental expenses - depreciation = 123000 - 38000 = 85,000
Q: A machine with a cost of $75,000 has an estimated residual value of $5000 and an estimated life…
A: Depreciation using Double Declining Balance Method Double Declining Balance Depreciation Rate = 2 x…
Q: If a new machine is purchased for OMR 200,000 that has a useful life of 5 years with no residual…
A: Realizable value is the amount at which the asset can be sold. However, this amount has to be netted…
Q: The first cost of a machine is $375,000 with a 7 years life. Annual interest rate is 20% and the…
A: Depreciation means a fall in the value of a tangible asset due to wear and tear over a period of…
Q: A new piece of equipment, with a life of eight years, costs $12000 to purchase. The end of life…
A: A part of the cost of the asset is charged as depreciation expense every year. When depreciation…
Q: d useful life of 6 years, and an estimated salvage value of $800. This machine falls into the MACRS…
A: Calculation of depreciation : Original cost − Salvage Value / Useful life…
Q: manufacturer of aerospace products purchased four flexible assembly cells for $530,000 each.…
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…
Q: Some equipment is needed for a construction project. It can be leased for $150,000 annually, or it…
A: IRR is discount rate at which total of discounted inflows gets equal to discounted value of outflows…
Q: A machine has an initial cost of $25,000, annual operating cost of $4,500 and a salvage value of…
A: Double-declining balance method (Accelerated method): In this method of depreciation, the…
- A new car is purchased for $48,000. This cost will be allocatd equally over 6 years. This cost allocation is called
depreciation . The book value of the car at any time after its purchase is its original cost minus all depreciation up to that point in time.- Create a mathematical model that relates the book value of the car to the time since its purchase.
- If the variable x represents the number of years of depreciation, what are the possible values of x in this problem?
- When is the book value of the car under $25,000?(Give exact answer)
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- A machine can be purchased for $150,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied using a five-year life and a zero salvage value. Compute the machine’s payback period (ignore taxes). (Round the payback period to three decimals.)If B = $400,000, n = 6 years, and S is estimated at 15% of B for a new pavement recycling machine, use the SYD method to determine (a) the book value after 3 years, and (b) the rate of depreciation and the depreciation amount in year 4.What is the average amount invested in a machine during its predicted five-year life if it costs $200,000 and has a $20,000 salvage value? Assume that net income is received evenly throughout each year and straight-line depreciation is used.
- A machine with a purchase value of 850,000 dollars and the productive life of the machine is 7 years. Calculate the annual depreciation of the machine and the book value for each year using the sum of the numbers of years of the productive life if you know that the book value of the machine at the end of its life is 150,000 dollars?Cisco Systems is purchasing a new bar code scanning device for its service center in San Francisco. The table on the right lists the relevant initial costs for this purchase. The service life of the system is 4 years and its salvage value for depreciation purposes is expected to be about 25% of the hardware cost. a. What is the cost basis of the device? b. What are the annual depreciations of the device if (i) the SL method is used? (ii) the 150% DB method is used? (iii) the 200% DB method is used? c. Calculate the book values of the device at the end of 4 years using all the methods above. Answers: (a) The cost basis of the device is (Round to the nearest dollar) (b) Annual depreciaitions and book values: (Round to the nearest dollar) Year 1 2 3 4 Book values at end of year 4 SL $ 150% DB $ 200% DB $ $ C Cost Item Hardware Training Installation Cost $165,000 $16,000 $14,000Stuart Rentals can purchase a van that costs $105,000; it has an expected useful life of three years and no salvage value. Stuart uses straight-line depreciation. Expected revenue is $52,220 per year. Assume that depreciation is the only expense associated with this investment. Required a. Determine the payback period. (Round your answer to 1 decimal place.) b. Determine the unadjusted rate of return based on the average cost of the investment. (Round your answer to 1 decimal place. (i.e., .234 should be entered as 23.4).) a. Payback period years b. Unadjusted rate of return %
- Baird Rentals can purchase a van that costs $110,000; it has an expected useful life of five years and no salvage value. Baird uses straight-line depreciation. Expected revenue is $40,425 per year. Assume that depreciation is the only expense associated with this Investment. Required a. Determine the payback period. Note: Round your answer to 1 decimal place. b. Determine the unadjusted rate of return based on the average cost of the investment. Note: Round your answer to 1 decimal place. (l.e., .234 should be entered as 23.4). a. Payback period b. Unadjusted rate of return years %Cisco Systems is purchasing a new bar code - scanning device for its service center in San Francisco. The table on the right lists the relevant initial costs for this purchase. The service life of the system is 4 years and its salvage value for depreciation purposes is expected to be about 23% of the hardware cost. a. What is the cost basis of the device? b. What are the annual depreciations of the device if (i) the SL method is used? (ii) the 150% DB method is used? (iii) the 200% DB method is used? c. Calculate the book values of the device at the end of 4 years using all the methods above. Answers: (Round to the nearest dollar) (a) The cost basis of the device is $ (b) Annual depreciaitions and book values: (Round to the nearest dollar) Year 1 2 3 4 Book values at end of year 4 SL 69 69 69 69 69 150% DB 69 $ $ 200% DB 69 69 69 12 Cost Item Hardware Training Installation Cost $160,000 $16,000 $17,000Cisco Systems is purchasing a new bar code scanning device for its service center in San Francisco. The table on the right lists the relevant initial costs for this purchase. The service life of the system is 4 years and its salvage value for depreciation purposes is expected to be about 22% of the hardware cost. a. What is the cost basis of the device? b. What are the annual depreciations of the device if (i) the SL method is used? (ii) the 150% DB method is used? (iii) the 200% DB method is used? c. Calculate the book values of the device at the end of 4 years using all the methods above. Answers: (a) The cost basis of the device is $ (Round to the nearest dollar) (b) Annual depreciaitions and book values: (Round to the nearest dollar) 200% DB Year 1 2 3 4 Book values at end of year 4 SL 150% DB (...) 0 Cost Item Hardware Training Installation Cost $165,000 $15,000 $15,000
- A robotics firm decides to install the latest computer server at a cost of $2 million which is going to increase its computational capacity. The installation cost is $200,000. The firm decides to use the server for the next eight years and then sell it at a price of $200,000. Using a straight line method, what will be the annual depreciation amount?A company is considering purchasing a machine for $26,500. The machine will generate income of $3,400 per year. Annual depreciation expense would be $1,600. What is the payback period for the new machine? Multiple Choice 3.3 years. 5.3 years. 7.8 years. 16.6 years. 14.7 years.Down below is the Chart where the New and Old Backhoes are displayed. Follow these Instructions: Start from 0 years to 8 years when calculating the Net present Value using the PVF Formula. For example PVF = 1 (1=8%) ^0 A. Calculate the net present value of the old backhoes and the new backhoes. B. Discuss the net present value of each, including what the calculations reveal about whether the company should purchase the new backhoes or continue using the old backhoes. C. Calculate the payback period for keeping the old backhoes and purchasing the new backhoes. (Hint: For the old machines, evaluate the payback of an overhaul.) D. Discuss the payback method and what the payback periods of the old backhoes and new backhoes reveal about whether the company should purchase new backhoes or continue using the old backhoes. Calculate the profitability index for keeping the old backhoes and purchasing new backhoes. The following information is available to use in deciding whether to…