A new top-of-the-line semi-truck tractor (the tractor pulls the trailer, the combination making up an “18-wheeler”) costs $200,000 and is MACRS-GDS 3- year property. What is the depreciation charge and book value at the end of year 2 using MACRS-GDS with 50% bonus depreciation? a. $133,330 and $66,670 b. $44,450 and $155,550 c. $44,450 and $22,220 d. $14,810 and $14,820.

Haresh

Q5.

Qw.25.

Required information [The following information applies to the questions displayed below.] Speedy Delivery Company purchases a delivery van for $38,400. Speedy estimates that at the end of its four-year service life, the van will be worth $6,200. During the four-year period, the company expects to drive the van 201,250 miles. Actual miles driven each year were 52,000 miles in year 1 and 58,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.) 2. Double-declining-balance. Annual Year Depreciation 1 2

am Warren Company plans to depreciate a new building using the double declining balance depreciation method. The building cost is $780,000. The estimated residual value of the building is $48,000 and it has an expected useful life of 25 years. What is the building's book value at the end of the first year? Grew H Multiple Choice O $717,600 $62,400 $31,200 $33.850 < Prev

Kk.254.   Company XYZ purchased a S.16H qualifying environmentally friendly vehicle for $500,000.           Vehicles are a 30% annual allowance asset.               How much of this purchase will be added to the 30% depreciation pool in the current year?

You purchase a new pizza oven for $9,950 which will have a scrap value of $900. Assuming a 35% depreciation rate, how much depreciation would you recognize in year one when using the Double Declining Balance depreciation method? $2,810 $3167.50 $3482.50 $3.572.75

A company purchases new cement manufacturing assets that cost $15 million. This is classified in the 15-year property class using MACRS-GDS. What would be the depreciation allowance and book value at the end of years 1 and 3 using MARS with 50% bonus depreciation? a) Depreciation allowance at the end of year 1: b) Book value at the end of year 3 c)Depreciation allowance at the end of year 1: d) Book value at the end of year 3

Required information [The following information applies to the questions displayed below.] Speedy Delivery Company purchases a delivery van for $38,400. Speedy estimates that at the end of its four-year service life, the van will be worth $6,200. During the four-year period, the company expects to drive the van 201,250 miles. Actual miles driven each year were 52,000 miles in year 1 and 58,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.) 3. Activity-based. Annual Year Depreciation 1