Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help HOMEWORK-DEPRECIATION/TAXES Initial cost Annual Revenue Annual Expense Recovery Period (expected life) Tax Rate MARR $400,000 $160,000 $30,000 5 30% 12% 1. STRAIGHT LINE (SL)

help

image text in transcribed

HOMEWORK-DEPRECIATION/TAXES Initial cost Annual Revenue Annual Expense Recovery Period (expected life) Tax Rate MARR $400,000 $160,000 $30,000 5 30% 12% 1. STRAIGHT LINE (SL) DEPRECIATION, NO SALVAGE VALUE. A. What is the Straight Line Depreciation amount in year 2? B. What is the cumulative depreciation amount in year 2? C. What is the Book Value at the end of year 2? D. What is the Book Value at the end of year 5? 2. STRAIGHT LINE WITH SALVAVAGE VALUE = $60,000 A. What is the Straight Line Depreciation amount in year 3? B. What is the Book Value at the end of year 3? C. What is the Book Value at the end of year 5? 3. DOUBLE DECLINING BALANCE (DDB) DEPRECIATION, NO SALVAGE VALUE. A. Construct a table showing yearly depreciation and book value. B. Construct a table showing DDB switching to Straight-Line Depreciation. 4. DOUBLE DECLINING BALANCE (DDB) WITH SALVAGE VALUE = $60,000. A. Construct a table showing yearly depreciation and book value. 5. MACRS DEPRECIATION A. What is the MACRS Depreciation Amount in year 2? B. What is the cumulative depreciation amount in year 2? C. What is the BV at the end of year 2? D. What is the Book Value at the end of year 5? E. What is the BV at the end of year 6? F. Using MACRS, construct a table showing yearly depreciation and Book Value

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Construction Accounting And Financial Management

Authors: Steven J. Peterson

1st Edition

0131109391, 978-0131109391

More Books

Students also viewed these Accounting questions