Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

need help fixing my incorrect answers Acquisition cost of equipment Useful life Salvage value at end of useful life Annual income generated by asset (before

need help fixing my incorrect answersimage text in transcribed

Acquisition cost of equipment Useful life Salvage value at end of useful life Annual income generated by asset (before deducting depreciation) $500,000 5 years 0 $150,000 The following is the accelerated depreciation schedule of the equipment Year 1 2 3 4 5 Depreciation $200,000 120,000 72,000 54,000 54,000 $500,000 Total Required: Using the information provided above, complete the table given below. If there is a loss, leave the ROI column blank. (Round your "ROI" percentage answers to 1 decimal place (i.e., .1234 should be entered as 12.3).) Year Annual Depreciation ROI Based on Gross Book Value 1 $ % Income Before Depreciation $ 150,000 150,000 150,000 150,000 150,000 2 Answer is complete but not entirely correct. Average Net ROI Based on Net Average Gross Book Book Value Book Value Value $ 400,000 % $ 500,000 240,000 12.5 % 500,000 140,000 55.7 X % 500,000 81,000 118.5 500,000 27,000 355.5 X % 500,000 Income Net of Depreciation $ (50,000) 30,000 78,000 96,000 96,000 6.0 200,000 120,000 72,000 54,000 54,000 % 3 15.6 % % 4 > 19.2 5 O 19.2 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions