An equipment costs $12,000 and can be sold at the end of 5 years for $300. What is the depreciation for year 3 if the sum of years’ digits depreciation method was used? (THIS IS ECONOMCS QUESTION DONT SKIP UNDER ANY OTHER SUBJECT) OTHERWISE WILL DOWNVOTE a. $2,340 b. $2,000 c. $3,200 d. $1,656

An equipment costs $12,000 and can be sold at the end of 5 years for $300. What is the depreciation for year 3 if the sum of years’ digits depreciation method was used? (THIS IS ECONOMCS QUESTION DONT SKIP UNDER ANY OTHER SUBJECT) OTHERWISE WILL DOWNVOTE a. $2,340 b. $2,000 c. $3,200 d. $1,656

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: A plant erected to manufacture socks has a first cost of P9,371,311 with a salvage value of x% of…

A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…

Q: The asset appears always at original cost in case depreciation is credited to provision for…

A: The asset appears always at original cost in case depreciation is credited to provision for…

Q: What impact does the market for intangible property such as stocks and bonds have on the market for…

A: The concept behind this question is to explore the interconnected relationship between the markets…

Q: A machine purchased for P150,000 its estimated life is 15 years, after which it will be sold for…

A: Sum of Years' Digits Depreciation Formulas The Sum of the years is calculated as 1+2+3+.......+n =…

Q: Find Net Value Added at Market Price (i) Depreciation (?) (ii) Output sold (units) 700 (iii) Price…

A: The formula for the net value added at Market price is:- NVAMP = ( Units output sold * Price per…

Q: This depreciation method assumes constant amount is depreciated each year over depreciable (useful)…

A: In economics, depreciation is defined as a measure of decrease in the market value of an asset over…

Q: Sheryl's Shipping had sales last year of $16.500. The cost of goods sold was $7,800, general and…

A: a. What are earnings before interest and taxes (EBIT)?EBIT is calculated as follows:Therefore EBIT…

Q: 1. You bought a new car for $42000. Assume the value of the car depreciates by 17% each year.…

Q: Assume $60,000 is going to be invested in each of the following assets, using table 12-11 and table…

A: Answer:- (A). Assets:- Office furniture Category:- 7 - Year MARCS Cost of Asset(A) :-…

Q: 6. An automated inspection system purchased at a cost of $120,000 by Kal Tech Engineering Systems…

A: Depreciation is regarded as a decrease in an asset's value when the asset is put to two different…

Q: factory has decided to purchase some new equipment for P600, 000. The equipment will be kept for 10…

A: given cost of equipment = 600000 P time = 10 years salvage value = 45000 P Adjusted value = cost –…

Q: 2. A manufacturing company purchased an equipment for methods improvement for P 53,000. Paid P 1,500…

A: The value of an asset depreciates over time due to use, deterioration, or obsolescence. This…

Q: A tax- and duty-free importation of a 30 HP sandmill (for paint manufacturing) cost P 360,000, CIF…

A: A typical form of depreciation that reduces the value of a fixed asset over the course of its useful…

Q: Office equipment ost P14,000, has a useful life of 12 years, and a salvage value of P1,000. Using…

A: Initial cost C0=14,000 Useful service life (L)=12 years Salvage value CL=1000 Depreciation method:…

Q: Determine the firm's 2021 tax liability. Tax liability Determine the firm's 2021 net income. Net…

A: The net income of the firm is the amount of accounting profit from which all the liabilities of the…

Q: 1-5 Calculate financial net income AFIT and net cash flow AFIT for year 3 only. Your Time 0…

A: Cash flow refers to the movement of money into and out of a business, organization, or individual's…

Q: Find the depreciation for the sixth year using MACRS cost-recovery rates for the property placed in…

A: Economic depreciation is defined as an asset's wear and tear that exceeds its projected capacity or…

Q: Major medical complexes and their service providers continue to move toward advanced health…

A: The ordinary depreciation strategy is doubled by the double falling balance depreciation method,…

Q: Complete the table.

A: Given cost of tractor = 24,680 $ Time = 12 years Salvage = 2600 $ Depreciation under straight line…

Q: Y T Yd C 500 175 325 340 600 200 400 400 700 225 475 460 800 250 550 520 900 275 625 580 Refer to…

A: Tax refers to the sum of money that the consumer or producer of a good or service pays the…

Q: estion 39 An electronies balance costs P89,000 and has an estimaled salvage velue of Po 000 al the…

Q: A certain machinery costs P 50,000 lasts 12 years with a salvage value of P 5,000. If the owner…

A: Cosy of Machinery = 50,000 Salvage Value = 5000 n = 12 years

Q: A fixed asset costing $80,000 and having an estimated salvage value of $6000 has a life expectancy…

A: Asset costing $80,000 Salvage value of $6000 N = 10 years.

Q: Calculate depreciation rate if:- GNP at MP = $13000 NDP at FC = $3500 Net factor income to abroad…

A: The data presented in the question above is:- GNP at MP = $13000 NDP at FC = $3500 Net factor…

Q: Margaret has invested in a project that will cost $17000 upfront and will provide annual revenue of…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Determine if each item below is a traceable or a common fixed cost. Depreciation on equipment used…

A: A cost that can be directly linked to a particular product line, service, or industry sector is…

Q: alo

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: ompany expects to use the truck years. expected alvage value of the truc k is $50,000 after the en…

A: Salvage value is the estimated book value of an asset after depreciation is complete, based on what…

Q: Cost is 70000 for some gym equipment, depreciates using a 3 year MACRS, use a table to show the…

A: Depreciation reffers to reduction in the value of asset over and over period of time due to wear and…

Q: An equipment costs ¥ 10,000 with a salvage value of ¥ 500 at the end of 10 years. Calculate the…

A: Given: The equipment cost is = ¥ 10,000 Salvage value = ¥ 500 To Find: The depreciation charge and…

Q: Research the types of depreciation. Provide a definition and model of each type of depreciation,…

A: Depreciation is the reduction in the value of an asset which tends to occur over time due to wear…

Q: uppose that the depreciation rate increases. In the Solow growth model, determine the effects of…

A: The depreciation causes fall in the availability of capital per workers. Now more saving or…

Q: Store Local Department Store Across Town Neighboring City Travel Time Each Way (Minutes) 15 30 60…

A: Introduction:The sum of all costs spent by a firm in achieving a given level of production is known…

Q: For a seven year class asset costing $150,000 according to MACRS, how much is the third year…

A: The Accelerated Cost Recovery System (ACRS) supplanted verifiable devaluation strategies in 1981. In…

Q: 37. Vince purchased a 2008 used car for $15,300. This make and model used car straight line…

A: Vince purchased a car for $15,300 and the car reduces its value to zero in 8 years due to…

Q: Electronic Games is moving very quickly to introduce a new interrelated set of video games. The…

A: Given: The initial investment = $9 million The salvage value after 6 years = $700,000 net…

Q: a/A piece of machinory Casts $ Soo and has an anticipated $ 1o00 Salvage value at the end of its…

A: Depreciation is a method for allocating a tangible asset's cost over its useful life, and it's used…

Q: Electronic Games is moving very quickly to introduce a new interrelated set of video games. The…

A: Given, Initial Investment : $9 millionSalvage Value after 6 years : $700,000Production Savings :…

Q: A factory bought new machinery at a price of $120,000. It cost them an additional $7,000 in shipping…

A: Depreciation and tax bases cost=Price of asset+Shipping and delivery charges+Installation charges

Q: Answer the following questions: A) What are the methods of depreciation in engineering economy? B.).…

A: Depreciation refers to the decrease in the value of physical properties or assets over time and use.…

Question

An equipment costs $12,000 and can be sold at the end of 5 years for $300. What is the depreciation for year 3 if the sum of years’ digits depreciation method was used?

(THIS IS ECONOMCS QUESTION DONT SKIP UNDER ANY OTHER SUBJECT) OTHERWISE WILL DOWNVOTE

a. $2,340

b. $2,000

c. $3,200

d. $1,656

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

1. Someone bought a house $400,000 in cash of which $100,000 is the value of the property. The property is rented out for 5k monthly and it cost 500 a month to maintain. He pays 38% in contributions. He plans to totally depreciate the property after 20 years, using the straight line depreciation . What is the vnet annual income from contributors? 2. A company bought a machine with an initial cost of $1million with a salvage value of 100,000 in year 10, it was sold in y5 for 1.2 million a) what are the tax implications of this sale? fully depreciated with a 100%bonus + straight line depreciations the firm that owns the machine pays corporate income taxes at crate of 40% and a capital gains taxes at a rate of 10%
A contractor imported a bulldozer paying 250,000 to the manufacturer. Freight and insurances cost 18,0000; broker's fee and taxes amounted to 33,500. If the contractor estimates the life of bulldozer to be 10 years with a salvage value of 20,000. determine the book vale at the end of 6 years using straight line and sinking formula at 8%. Ans: USE 2 decimal places, no comma. Ex: 123400.50 Book value@6 years using straight line is Blank 1 Book value@6 years using sinking fund is Blank 2
None
Question 1 If you buy an aircraft for 10 million and pay a sales tax of 35%. Prepare depreciation schedule using MACRS, Assuming 10% interest rate, what's the net present worth of the depreciation schedule, using MACRS? Assume 5-yeap property class. Your Answer: Answer
2. In 2015 your friend bought a Pear ePhone-X smart phone for $781. Now, in 2021, Sell-My-Stuff says that it is worth $405. (a) Assuming linear depreciation, find a function V(x) for the value of the phone, x years after 2015. (b) How much will the phone be worth in 2022? (c) In what year will the phone be worth $0? Please round to the nearest year.
3. ASAP PLEASE SOLUTION ANF FINAL ANSWER
4. A commercial building has a salvage value of Php 1 million after 50 years. Annual depreciation is Php 2,000,000. Using the Straight Line Method, how many years after should you sell the building for Php 30,000,000?
Calculate the gross value of net value is $750 and depreciation is $80
All subpart in 1 question
ENGINEERING ECONOMICS A man deposit ₱1,00,000,000 for one year which pay an annual interest of 6%. The income is taxable and the bank charges a withholding tax of 20% tax rate. Compute the after tax rate of return in his deposit. SHOW COMPLETE SOLUTON ON A PAPER.
6. CONSOL Energy purchased a new continuous miner to mine coal in one of their underground coal mines for $261,653. Calculate the depreciation using MACRS for year 3. (Use asset class 10.0)
7. An asset has an initial cost of $80,000, a salvage value of $10,000, and a depreciation life of 8 years. a) Determine the book value for year 3 using straight-line depreciation. b) Determine the depreciation for year 3 using double declining balance depreciation. Determine the equivalent annual capital recovery_plus a return of 10% for year 3, assuming double declining balance depreciation. c)