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
Think about the demand for the three popular game consoles: XBox, PS3, and Wii. What is the effect on the demand for XBox games and the quantity of XBox games demanded if, other th

Q=2h find the marginal point. where q is the quantity of electricity in MW-h and h is the amount of water (in 100s of liters per hour)

Equity: The proportion of a company's total assets which are "owned" outright by the company's owners. A company's equity is equivalent to its value less its debt owed to bankers,

Protection against dumping: It could be looked at as the export of commodities priced below cost of production. Dumping is generally looked upon as an unfair trading practice

Environmental Scan SWOT analysis: SWOT analysis will help to describe about the strengths, weakness, opportunities as well as threats. This is the strategic planning method

if the price of labour is 2000 per hour and the price of capital is 1000 per hour.is there an efficiency point of production.

what is the buying power of one''s income?

What is Hybridization? Atomic orbitals can be combined, in a process called hybridization in chemistry , to describe the bonding in polyatomic molecules. Descriptions of the b


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