Freeman Engineering paid $40,000 for specialized equipment for use with their new global positioning system/geographic information system (GPS/GIS). The equipment was depreciated over a 3-year recovery period using Modified Accelerated Cost Recovery System (MACRS) depreciation. The company sold the equipment after 2 years for $8,000 when it purchased an upgraded system. Determine the amount of the depreciation recapture or capital loss involved in selling the asset.   The amount of capital loss is determined to be $___

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A machine is purchased for P600,000 with a salvage value of P 85,000 after 25 years. What is the total depreciation in the first 10 years using straight line method?

A certain company make it a policy that for any new equipment the annual depreciation cost should not exceed 10% of the original cost at any time with no salvage value, Determine the length of service life necessary if the depreciation method used is straight line, and SF at 8%

Use declining-balance depreciationUse Double declining balance depreciatinUse double declining balance,switching to straight-line depreciation Provide depreciation and book value for year 2

Company RLM purchased a machine that cost $60,000 and will last 6 years.A salvage value was not assigned to the asset. Determine the annual depreciationexpense using the straight-line method.

Using the following data, solve for the depreciation and book value and prepare tabulation of book value using a) Straight Line Method, b) Sinking Fund Method, c) Declining Balance Method, and d) Sum-of-Years Digit (SOYD) Method. First cost P10.000 Salvage Value = P500 Life of Property = 5 years For sinking fund method, assume 10% interest rate,

A new industrial vacuum for electronic factory activities has a purchased value of $50, 000 and $20,000 for transportation cost within a 7-years depreciable life. The estimated salvage value of the equipment is zero at the end of 7 years. Calculate the annual depreciation amounts using the 200% DB method.

A procurement engineer bought a large transformer core for Php 250,000. Other expenses including installation amounted to Php 30,000. At the end of its estimated useful life of 15 years, the salvage value will be 25% of the first cost. Using straight line method for depreciation, what is the book value after 4 years?

A machine was bought 3 years ago for $20,000. SL depreciation has been used with B=$20,000, N=4years, S=$0. A replacement is been considered. A new machine can be bought for $16,000 to replace the old one. DDB depreciation will be used for the new machine with B=$16,000, N=4 years, S=$0. The new machine will be used for 2 years and then can be sold for $12,000. The new machine will save $5,000/yr in operation cost. The old machine can be sold for $4,000 right now, or kept in use for 2 more years and then will be sold for $1,000. Incremental combined tax rate is 50%, after-tax MARR is 10%. Calculate ∆PW of the replacement.