FrostCo operates soil movement measuring equipment in the Northwest Territories. It has purchased a monitor for $45,000 that it will depreciate using declining balance depreciation at 25%. Calculate the book value at the end of 1, 4, and 6 years. Use Excel. (3 marks)

Suncoast Food Centers has provided the following information with regard to the purchase of equipment. Acquisition cost of equipment Useful life Salvage value at end of useful life Annual straight-line depreciation Annual income generated by asset (before deducting depreciation) Year 1 2 3 4 5 Use a 10 percent rate to compute the imputed interest charge. Required: Complete the following table. Income Before Depreciation $900,000 Annual Depreciation 5 years 0 $180,000 $270,000 Income Net of Depreciation Based on Net Book Value Average Net Book Imputed Interest Value Charge Residual Income Based on Gross Book Value Imputed Interest Charge Average Gross Book Value Residual Income

A machine can be purchased for $50,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $10,000. Income Year Year 1 $3,300 Initial invest Year 1 Year 2 Year 3 Year 4 Year 5 Year 2 $8,300 Compute the machine's payback period. Note: Round payback period answer to 2 decimal places. Net Income Depreciation 3,300 8,300 30,000 12,400 33,200 Year 3 $30,000 Year 4 $12,400 Net Cash Flow $ (50,000) $ Payback period = Year 5 $33,200 Cumulative Net Cash Flow (50,000) 0 0

Required information [The following information applies to the questions displayed below.] NewTech purchases computer equipment for $264,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $28,000. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. Straight-Line Depreciation Choose Numerator: Choose Denominator: Annual Depreciation Expense = = Year Annual Depreciation Year 1 Year 2 Year 3 Year 4 Total Depreciation expense WHEREL Year-End Book Value

XYZ Corporation has purchased a new piece of machinery for $75,000. The piece of equipment should last for 8 years and will have a $5,000 salvage value at the end of its useful life. They plan on using the unit-of-production depreciation method. Use the production information below to calculate the estimated depreciation information for each year.  Year Units Produced 1 8,000 2 10,000 3 12,000 4 14,000 5 12,000 6 10,000 7 8,000 8 5,000

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

Dragonfly, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available: Investment A Investment B $101,000 Initial capital investment Estimated useful life $151,000 10 years 10 years Estimated residual value $20.000 $47.000 12% Estimated annual net cash inflow for 10 years $28.000 Required rate of return 12% Calculate the payback period for Investment A. (Round your answer to two decimal places.) O A. 1.00 year О В. 3.61 years O C. 2.22 years O D. 2.89 years

Montello Inc. purchases a delivery truck for $12,000. The truck has a salvage value of $2,000 and is expected to be driven for 100,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expens

Montello Inc. purchases a delivery truck for $23,051. The truck has a salvage value of $4,562 and is expected to be driven for 132,141 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 20,068 miles. Calculate the annual depreciation expense. Round to the nearest penny, two decimal places.

A machine can be purchased for $90,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $18,000 Income Year 1 Year 3 Year 5. $6,000 $36,000 $60,000 Compute the machine's payback period. (Round payback period answer to 2 decimal places.) Year Initial invest - Year 1 Year 2 Year 3 Year 4 Year 5 Net Income Depreciation $ Year 2 $15,000 6,000 15,000 36,000 22,500 60,000 Year 4 $22,500 Net Cash Flow $ Cumulative Net Cash Flow (90,000) $ Payback period- (90,000)