Adebola deliver service uses two delivery vans. Her business policy is to replace the vans every 4 years. One of the vans which was bought 4-years ago at a cost of £12,750, is due for replacement. Adebola depreciates the vans using the reducing balance methods at a rate of 25% per annum. She accepts an offer of £3,650 for the van.   What is Adebola’s profit or loss on the sale of the Van  after year 4?

Denny Kean owns a very profitable ice cream stand. Based on the results of a $6,600 marketing researchproject, Denny is now considering adding a line of frozen yogurt to his product mix.Denny expects that the machine necessary to produce the yogurt will cost $130,000, last for five years andhave a salvage value of $10,000 at the end of the fifth year. For tax purposes, Denny will depreciate theyogurt machine over the five years to a zero salvage value using the straight-line method.Denny will incur extra annual fixed costs of $1,500 per year if he acquires this machine, while his variablecosts (the cone/cup, yogurt, wrapping paper, spoons, etc.) will be $0.50 per serving. He expects to sell100 servings a day (365 days in a year) at a price per serving to be determined. The annual rent on hisstand under the existing noncancelable lease (with ten years remaining) is $18,000 per year, with built-inannual increases to cover inflation (expected to be 3% annually).The relevant income tax…

Kristen Lu purchased a used automobile for $8,350 at the beginning of last year and incurred the following operating costs:   Depreciation ($8,350 ÷ 5 years) $ 1,670   Insurance $ 900   Garage rent $ 500   Automobile tax and license $ 230   Variable operating cost $ 0.11 per mile   The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $1,670. The car is kept in a garage for a monthly fee.   Required: 1. Kristen drove the car 11,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.)

Please read and answer the question carefully.

Kristen Lu purchased a used automobile for $8,350 at the beginning of last year and incurred the following operating costs:   Depreciation ($8,350 ÷ 5 years) $ 1,670   Insurance $ 900   Garage rent $ 500   Automobile tax and license $ 230   Variable operating cost $ 0.11 per mile   The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $1,670. The car is kept in a garage for a monthly fee.   Required: 1. Kristen drove the car 11,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.)

Kenzie Company purchased a 3-D printer for $591,000. Although this printer is expected to last for ten years, Kenzie knows the technology will become old quickly and so she plans to replace this printer in three years. Kenzie Company will be able to sell the printer for $30,000. Using the double-declining-balance method, what amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded? Round final answers to nearest whole dollar amount. Depreciation Вook Expense Value Year 1 Year 2 Year 3

Hancheta Inc. is considering the purcase of a new vehicle for P350,000. The firm's old vehicle has a book value of P85,000, but can only be sold for P60,000. The new vehicle will be depreciated using a 5 year useful life and the straight line method. It is expected to save P62,000 after taxes from the reduced fuel and maintenance expenses. Tabletop Raul is in the tax bracket and has a 12% cost of capital. Compute for the accounting rate of return on initial investment.

Ruth just graduated from college. Since she is starting her own business, it's time to upgrade from her clunker to a reliable vehicle. Ruth has the option to purchase a new car for her business at a cost of $21,528 (life of 7 years with no salvage value), estimating that it would help her bring in additional annual net operating cash flows of $10,400 over the life of the car. Determine the simple payback period and the IRR for this investment. Ruth expects her business income to be subject to a 30% tax rate. (Round simple payback perlod to 3 decimal places, eg. 15.256 and IRR to 2 decimal places, eg. 15.25%. Round Intermediate calculations to 2 decimal places, eg. 15.25) Simple payback period IRR years. %

Hanshaben

John Morse Corporation buys a van for $16,000. The estimated life of the van is four years. The residual value of the van is $4,000. After two years, the van is sold for $8,000. What was the difference between the book value and the amount received from selling the van if John used the straight-line method of depreciation?