Equipment was purchased for $90,000. Freight charges amounted to $4200 and there was a cost of $12,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a a $0 residual value at the end of its five-year useful life. Depreciation expense each year using the straight-line method will be:

An equipment costing P220,000 has an estimated life of 14 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using: a. straight-line method b. sinking fund method c. declining balance method d. sum of year's digit method

A building was purchased for $68,000. The asset has an expected service life of eight years and depreciation expense each year is $5,000 using the straight-line method. What is the residual value of the building? Multiple Choice $0 $28,000 $8,500 $13,500

A company is considering the purchase of a capital asset for $135,000. Installation charges needed to make the asset serviceable will total $25,000. The asset will be depreciated over six years using the straight-line method and an estimated salvage value (SV6) of $10,000. The asset will be kept in service for six years, after which it will be sold for $ 30,000. During its useful life, it is estimated that the asset will produce annual revenues of $40,000. Operating and maintenance (O&M) costs are estimated to be $8,000 in the first year. These O&M costs are projected to increase by $ 1,200 per year each year thereafter. The after-tax MARR is 12% and the effective tax rate is 40 % .C) The before - tax present worth of this asset is -$60,000. By how much would the annual revenues have to increase to make the purchase of this asset justifiable on a before - tax basis?

Kelly’s Fitness Center purchased a new step machine for $16,500. The apparatus is expected to last four years and have a residual value of $1,500. Costs to deliver this machine are $3,000, costs to repair it in the second year are totaled as $500.What will the depreciation expense and carrying value be for each year under the straight-line method? Assume that the step machine is depreciated using the double declining-balance method. How much would depreciation expense and carrying value be in each year?

An industrial equipment is purchased for $300,000. It is expected to work for 12 years before it is sold for $50,000. Moreover, the annual cost of maintaining this equipment is estimated to be $20,000. Given those information and MARR-10%, answer Questions 1-4 below: For all questions, you are required to show all calculations. 1) Use the switchover technique of 150% DB to depreciate this equipment during its service life 2) Use the Corporate Federal Tax (2006) to construct the AFTCF given the calculations obtained in Question 1 and annual revenue of $150,000 3) Use 25% income tax rate to construct the AFTCF given the calculations obtained in Question 1 and annual revenue of $150,000 4) Calculate the PWs of the two cashflows obtained in Questions 2 & 3

Machinery was purchased for $400000. Freight charges amounted to $15000 and there was a cost of $34000 for building a foundation and installing the machinery. It is estimated that the machinery will have a $50000 salvage value at the end of its 4-year useful life. Depreciation expense each year using the straight-line method will be $99750. $87750. $112250. Ⓒ$87500.

The boiler in a steam power plant costs P 20,000,000 and has a salvage value of P 950,000 at the end of 25 years. Determine the annual depreciation of the equipment using the Straight-line method and Sinking fund method at 6% compound interest annually.

Big M's BBQ purchased a truck for $51,000 on 1/1 in Year 1. The truck is expected to have a five-year life or last 100,000 miles and have a residual value of $10,000. The truck was driven as follows for year 1 & 2: Year 1 29,000 miles • Year 2 11,000 miles If the activity based depreciation method is used, what will be the book value of the truck at the end of Year 2 on 12/31? Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123, you would only input: 24123 ASUS f4 f5 f6 f7 f8 f9 f10 f11 图

A copy machine cost $95,000 and has an estimated residual value of $5,000. It is expected to last about ten years and to make a total of 3,000,000 copies. 200,000 copies are made in Year 1, 300,000 in Year 2, and 450,000 in Year 3. Units-of-Activity depreciation is used.What is the balance in the Accumulated Depreciation account at the end of Year 3?