this question then demonstrate the use of the formulae in finding your answers. A new machine was purchased for $45,000. For tax purposes
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State the appropriate formulae used in solving parts of this question then demonstrate the use of the formulae in finding your answers.
A new machine was purchased for $45,000. For tax purposes, the company
value by 5% annually. Determine the value of the machine after 7 years of use?
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- A file server and peripherals are purchased in December by a calendar-year taxpayer for $8,000. The server will be used for 6 years and be worth $200 at that time. Calculate the depreciation deduction during years 1, 3, and 6. Use declining balance depreciation, switching to straight-line depreciation.Fink Co. is interested in purchasing a new business vehicle. The vehicle costs $48,000 and will generate delivery revenue of $23,000 for each of the next 6 years. At the end of the 6 years, the vehicle will have a salvage value of $4,800. The tax rate is 21%. Assuming that the vehicle is depreciated using MACRS 5-year property class, and that Fink Co. uses an after-tax MARR of 7%, compute the PW and determine whether Fink Co. should purchase the new business vehicle. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ±10. Should Fink Co. purchase the new business vehicle? YesFor specialized devices for use with its latest GPS / GIS system, Freeman Engineering charged $28,500. Using MACRS depreciation, the equipment was depreciated over a 3 year recovery period. After 2 years, the company sold the equipment for $5000 when it bought an improved system. (a) Assess the value of the recapture of depreciation or the capital loss involved in the asset sale. (b) What tax impact is that number going to have?
- Economics Can you solve it manually, please.? A bank purchased a new computer information system which cost them $350,000. Suppose this is considered a 5-year MACRS property. The system can be salvaged for about $40,000 at the end of ten years. (a) What are the annual depreciation values for tax purposes over the system's useful life? (b) What is its book value at the end of year 2 for tax purposes?A file server and peripherals are purchased in December by a calendar-year taxpayer for $8,000. The server will be used for 6 years and be worth $200 at that time. Calculate the depreciation deduction during years 1, 3, and 6. Use straight-line depreciation.Asap
- Bob's BLT's purchases a sandwich making machine for $5,929 at the beginning of Year 1. He expects the machine to last 8 years, and expects the machine to have a salvage value of $555. Given this information, how much depreciation expense will Bob record for the machine each year? Round your final answer to two decimal places. LA company purchased a piece of equipment for $155,000 and sells it after 3 years. The equipment is depreciated by the MACRS method using a five-year period. The annual maintenance cost of the equipment is $2,900. If the equipment is sold at end of 3 years for a value of $30,000, what will be the taxes that has to be paid from the sale of the equipment? Assume that the tax rate is 35%. O $6790 O $7980 $8136 O No taxis to be paidA machine was purchased 4 years ago for $50,000. The depreciation amount each year was $10,000. The firm that owns the machine no longer has a need for it, but a buyer is now willing to pay $60,000 for it because machines of this type are no longer available. If the tax rate is 23%, what tax will be owed on the transaction? Edit
- To keep track of customers' behavior, a grocery store chain invests $75,000 in a CRM system. This new system is treated as a seven-year MARCS property for tax purposes.The system's life-span is six years, and at the end of the six years, the expected salvage value is $5,500.(i) What is the depreciation allowance for the forth year of use?(ii) What is the depreciation allowance for the sixth year of use? A) (i) $9,367.5, (ii)$3,345.0B) (i) $9,367.5, (ii)$6,690.0C) (i) $8,680.6, (ii)$3,099.7D) Answers A, B and C are not correctIU purchased a super computer for $15,000. This computer qualifies for 5-year recovery under MACRS. Use the Table provided in lectures. IU has a tax rate of 20%. Assume that the super computer is sold for $4,000 at the end of year 4. What is the after- tax salvage value? O $2,765.21 O $1,877.00 O $3,718.40 O $2,765.34A global positioning system (GPS) receiver is purchased for $3,000. The IRS informs your company that the useful (class) life of the system is seven years. The expected market (salvage) value is $200 at the end of year seven. Solve, a. Use the straight-line method to calculate depreciation in year three. b. Use the 200% declining balance method to calculate the cumulative depreciation through year four.c. Use the MACRS method to calculate the cumulative depreciation through year five. d. What is the book value of the GPS receiver at the end of year four when straight-line depreciation is used?