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
Q. What is Unit Labour Cost? Unit Labour Cost: How much an employer pays for labour needed to produce each unit of a good or service. Unit labour cost can be computed by dividi

Discuss about Modern economic growth Modern economic growth is also a shift in the kinds of things we do at work and play and in the way we live. Back in immediate aftermath of

#1 explain with the aid of diagram the effect of an increase in demand for palm oil on the equilibrum position for palm kernel

Assume the banking system contains: Total Reserves                         $ 80 billion Transactions Deposited          $800 billion Cash held by public                 $1

Significance of Stagnation in Supply and Demand Calculus Stagnation refers to failures of students in a grade/class or grade repetition. The objective of a course is to make c

illustrate and discuss the implications of various markets structures(competitive and non-competitive) for price dertimation

Production having Two Outputs -Economies of Scope *  Economies of scope exist when joint output of a single firm is greater than the output which could be achieved by two diffe


Most lotteries in the United States pay their winnings over time. For illustration, a million-dollar winner will receive $100,000 initially and the rest in equal installments over

how a capitalist system solves the three fundamental economic problems