Depletion and depreciation, economics, Microeconomics

During its current tax year (year one) a pharmaceutical company purchased a mixing tank that had a fair market price of $120,000. It replaced the an older, smaller mixing tank that had a BV of $15,000. Because a special promotion was underway, the old tank was used as a trade-in for the new one, and the cash price (including delivery and installation) was set at $99,500. It was assumed that the new mixing tank has a useful life of 9 years.

A. What is the depreciation cost in year three and BV at the end of year four of the new mixing tank? Use (a) SLM (b) SYDM and (c) Sinking Fund if i = 7%.

B. If Declining Balance depreciation has been applied on this problem, what would be the cumulative depreciation through the end of year four?
Posted Date: 3/4/2012 7:55:24 PM | Location : United States







Related Discussions:- Depletion and depreciation, economics, Assignment Help, Ask Question on Depletion and depreciation, economics, Get Answer, Expert's Help, Depletion and depreciation, economics Discussions

Write discussion on Depletion and depreciation, economics
Your posts are moderated
Related Questions
calculate point elasticity of demand function Q=10-2p for decrease in price from Rs3 to Rs2

Discuss the impact of rational self-interest on each of the following decisions

MRTS and Marginal Productivity The change in output from change in labor equals:                     The change in output from change in capital equals


How does the PED and PES of commodities affect producers in developing countries? Explanation of PED (formulaic) Definition of PED outlining commodities as having lo

Program Spending: Government spending that is undertaken to provide useful public programs. Program spending includes both transfer payments which are intended to supplement the in

advantages and disadvantages

Revise business plans to incorporate appropriate changes.

hoe does the knowledge of price elasticity of demand important to the government

Explain how unemployment could be voluntary or involuntary . Start off with a definition of the labour force and then outline the proportion of the labour force which would be