7.)

Clark Company purchased a new machine on January 1, 2024 for $255,000. On this date, the machine was estimated to have a life of 16 years and a residual value of $9,000. The company will depreciate the machine using the straight-line method. On January 1, 2030, Clark Company spent $53,000 to overhaul the machine. This capital expenditure caused Clark Company to change the life of the machine from 16 to 21 years with a residual value of $11,000 at the end of the 21 years. Calculate the book value of the machine at December 31, 2033.

8.)

ABC, Inc. purchased a small building by making payments of $5,000 at the beginning of each year for ten years. However, nine years passed before ABC made any payments. Use an interest rate of 8% compounded annually. Calculate the present value of the payments made by ABC, Inc.

Future Value of a Lump-Sum Present Value of a Lump-Sum Future Value of an Annuity Present Value of an Annuity