On January 1, 2020, QuickAir Transportation Company purchased a used aircraft at a cost o $64,400,000. QuickAir expects the plane to remain useful for five years (7,000,000 miles) an have a residual value of $6,400,000. QuickAir expects to fly the plane 925,000 miles the first year, 1,225,000 miles each year during the second, third, and fourth years, and 2,400,00 miles the last year. Read the requirements. ... 1. Compute QuickAir's depreciation for the first two years on the plane using the straight-line

K On January 1, 2020, QuickAir Transportation Company purchased a used aircraft at a cost of $52,400,000 QuickAir expects the plane to remain useful for five years (7,000,000 miles) and to have a residual value of $6,400,000 QuickAir expects to fly the plane 925,000 miles the first year, 1,300,000 miles each year during the second, third, and fourth years, and 2,175,000 miles the last year. Read the requirements Using the straight-line method, depreciation is $ 9,200,000 for 2020 and $9,200,000 for 2021 b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is $ 6,077,250 for 2020 and $ 8,541,000 for 2021. c. Double-declining balance method Using the double-declining-balance method, depreciation Book Value: CELE 2. Show the airplane's book value at the end of the first year under each method Less Book Value Etext pages Get more help $ 20,960,000 for 2020 and $…

We purchase a delivery truck for $70,000 cash. We estimate the following: Cost $70,000 Residual Value $10,000 Life in years 6 years Life in miles 300,000 miles Number of tires 8. 1: IF we have a fiscal year end of 12/31, and we purchase the truck in year 1 on March 1", calculate the depreciation for the first 3 years using the straight-line method:

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On January 1, 2018, Spring Co. purchased a land for $12,000,000. Thecompany expected to extract 2,000,000 tons of mine from this land overthe next 20 years at which time, the residual value of the asset shall bezero. During 2018 and 2019 operations, 60,000 tons were mined each yearand sold for P80 per ton. The estimate of the remaining lifetime capacityof the mine was raised to 2,400,000 tons at the start of 2020 and theresidual value was to be $960,000. How much should be recognized asdepletion in 2020 if the total production for 2020 is 100,000 tons?

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Your company is contemplating the purchase of a large stamping machine. The machine will cost $167,000. With additional transportation and installation costs of $5,000 and $11,000, respectively, the cost basis for depreciation purposes is $183,000. Its MV at the end of five years is estimated as $34,000. The IRS has assured you that this machine will fall under a three year MACRS class life category. The justifications for this machine include $45,000 savings per year in labor and $29,000 savings per year in reduced materials. The before-tax MARR is 24% per year, and the effective income tax rate is 28%. Assume the stamping machine will be used for only three years, owing to the company's losing several government contracts. The MV at the end of year three is $47,000. What is the income tax owed at the end of year three owing to depreciation recapture (capital gain)? E Click the icon to view the GDS Recovery Rates (rg) for the 3-year property class. Choose the correct answer below. O…

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An asset with a purchase price of $501,013 falls in the 3-year MACRS asset class.  The asset will be sold at the end of a three year project for $180,745.  What is the book value of the asset at the end of the project? Round your answer to the nearest dollar. Year Depreciable Allowance 1 33% 2 45 3 15 4 7