Question
please answer question 4.. data provided below 1) PRESENT WORTH = 2300 2) DEPRECIATION= 1800 (1000-500/8) SLD YEAR OPERNING BALANCE DEPRECIATION CLOSING BALANCE 1 10000
please answer question 4.. data provided below
1)
PRESENT WORTH = 2300
2) DEPRECIATION= 1800 (1000-500/8)
SLD | |||
YEAR | OPERNING BALANCE | DEPRECIATION | CLOSING BALANCE |
1 | 10000 | 1188 | 8812 |
2 | 8812 | 1188 | 7624 |
3 | 7624 | 1188 | 6436 |
4 | 6436 | 1188 | 5248 |
5 | 5248 | 1188 | 4060 |
6 | 4060 | 1188 | 2872 |
7 | 2872 | 1188 | 1684 |
8 | 1684 | 1188 | 496 |
3)
SOYD | ||||||
YEAR | OPERNING BALANCE | FRACTION | DEPRECIATION | CLOSING BALANCE | ||
1 | 10000 | 8 | 0.222222 | 2111.111 | 7888.889 | |
2 | 7888.889 | 7 | 0.194444 | 1847.222 | 6041.667 | |
3 | 6041.667 | 6 | 0.166667 | 1583.333 | 4458.333 | |
4 | 4458.333 | 5 | 0.138889 | 1319.444 | 3138.889 | |
5 | 3138.889 | 4 | 0.111111 | 1055.556 | 2083.333 | |
6 | 2083.333 | 3 | 0.083333 | 791.6667 | 1291.667 | |
7 | 1291.667 | 2 | 0.055556 | 527.7778 | 763.8889 | |
8 | 763.88 | 1 | .0277777 | 263.88 | 500 | |
36 | 9500 | |||||
DEPRECIATION= 10000-500*8/36= 2111
4)
DDB | |||
YEAR | OPERNING BALANCE | DEPRECIATION | CLOSING BALANCE |
1 | 10000 | 2500 | 7500 |
2 | 7500 | 1875 | 5625 |
3 | 5625 | 1406.25 | 4218.75 |
4 | 4218.75 | 1054.688 | 3164.063 |
5 | 3164.063 | 791.0156 | 2373.047 |
6 | 2373.047 | 593.2617 | 1779.785 |
7 | 1779.785 | 444.9463 | 1334.839 |
8 | 1334.839 | 333.7097 | 1001.129 |
DEPRECIATION= 100/8= 12.5%
UNDER DDB= 12.5*2= 25%
5)
MACRS | |||
YEAR | OPERNING BALANCE | DEPRECIATION | CLOSING BALANCE |
1 | 10000 | 2500 | 7500 |
2 | 7500 | 1875 | 5625 |
3 | 5625 | 1406.25 | 4218.75 |
4 | 4218.75 | 1054.688 | 3164.063 |
5 | 3164.063 | 791.0156 | 2373.047 |
6 | 2373.047 | 593.2617 | 1779.785 |
7 | 1779.785 | 444.9463 | 1334.839 |
8 | 1334.839 | 333.7097 | 1001.129 |
DEPRECIATION= 2500(1000*1/8*200%)
3. A mining company invests $10,000 in equipment that will result in a $3,000 annual revenue stream for 8 years. Annual expenses are $700, salvage $500 after 8 years and the MARR 9% . The corporation expects to pay 53% of its revenue in income tax. What is a) The before-tax present worth ? b) Calculate the SLD deprecation schedule c) Calculate the SOYD deprecation schedule d) Calculate the DDB deprecation schedule e) Calculate the MACRS deprecation scheduleStep by Step Solution
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