Calculate depreciation deduction and unrecovered investment

Assignment Help Econometrics
Reference no: EM13238596

A tractor for over the road hauling is purchased for $ 90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $ 4,000.
Calculate the depreciation deduction and the unrecovered investment during each year of the tractor's life using MACRS allowances.

a. What is the MACRS property class?

b. Assume the tractor is used for the full 6 years.

c. Assume the tractor is sold during the fourth year of use.

d. Assume the tractor is sold during the third by ear of use.

Reference no: EM13238596

Questions Cloud

What is the resistance r of the resistor : Various voltages V are applied across a resistor and for each value of V the current I through the resistor is measured, What is the resistance R of the resistor
What is the loss in consumer surplus due to the tax : Suppose the market demand function for ice cream is and the market supply function for ice cream is , both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream.
Explain the following reversible reaction : Consider the following reversible reaction. In a 1-liter container the following amounts are found in euilibrium at 400 deg C., 0.0536 mole N2, 0.599 mole H2, and 0.0437 mole NH3. Evaluate Kc = N2(g) + 3 H2(g)-> 2 NH3(g) answer in significant figu..
Find the number of suvs in the lot : In a college parking lot, the number of ordinary cars is larger than the number of sport utility vehicles by 85.7%, Find the number of SUVs in the lot
Calculate depreciation deduction and unrecovered investment : A tractor for over the road hauling is purchased for $ 90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $ 4,000. Calculate the depreciation deduction and the unrecovered investment.
Explain draw the major e2 reaction product formed : Draw the major E2 reaction product formed when (1R,2S,4S)-2-chloro-4-methyl-1- (propan-2-yl)cyclohexane (shown below) reacts with hydroxide ion in DMSO.
What is the velocity of the puck : At time t = 0 s, a puck is sliding on a horizontal table with a velocity 3.60 m/s, 35.0° above the +x axis, What is the velocity of the puck at time t = 1.50 s
What is the marginal rate of technical substitution of labor : Suppose the production function is given by the following equation (where a and b are positive constants): Q=aL+bK. What is the marginal rate of technical substitution of labor for capital (MRTsL,K ) at any point along an isquant
Explain controlling the ph of the solution : Suppose you wished to control the PO43- concentration in a solution of phosphoric acid by controlling the pH of the solution. If you assume you know the H3PO4 concentration, what combined equation would be useful for that purpose? Include physical..

Reviews

Write a Review

Econometrics Questions & Answers

  What is the companys fixed cost

How many units should be produced to maximize profit? How do this company's marginal costs behave as output increases? Provide a logical explanation as to why a computer manufacturer's marginal costs might behave in this way.

  Relate the price y and the demand x for the hotel rooms

Suppose that when a hotel charges $50 per night, 200 rooms are rented and when they charge $75 per room, 150 rooms are rented. Assuming a linear relationship between x, the number of rooms rented and y, the price charged per room.

  What is the opportunity cost of the trip to costa rica

You can either spend spring break working at home in Alabama for $200 a day for five days, or you can spend the week in Costa Rica where travel expenses will total $700 (food, hotel, and a plane ticket.)

  What should bid if you want to maximize your expected profit

the company's value in the hands of current management is somewhere between $10 million and $110 million, uniformly distributed over this range. The current management will sell the company to you if, and only if, your bid exceeds the true value k..

  How many more trips will you need to buy a boat

A Malibu boat will cost $32,500 when purchased. Gasoline and maintenance will approximately cost $25/hour, and equipment rental will cost $10/hour. The boat will be used for wakeboard instructing and will generate revenue of $100/hour.

  How much profit does mensa make at that output

Suppose that Mensa Inc. is a representative firm operating in a perfectly competitive industry. Mensa's total cost of production, TC, is given by the equation TC = 5,000 +5q2, where q is Mensa's output. How much profit does Mensa make at that outpu..

  Find the number of deposits thomas must make

Thomas has found a savings fund that pays interest of 2.62 percent compounded semiannually. He will make monthly deposits of $395 and he can make a deposit only once a month on the agreed payment date. Find the number of deposits Thomas must make.

  Determine if the promise credible or not

Two major networks are competing for viewer ratings in the 8:00-9:00 P.M. and 9:00-10:00 P.M. slots on a given weeknight. Each has two shows to fill this time period and is juggling its lineup. Is this promise credible.

  Which lottery do you prefer

Your utility if a function of income (i), given by: \(U = 10i\) as long as i is less than or equal to 300. If I is greater than 300, your utility is a constant equal to 3,000. Suppose you have a choice between having an income of 300 with c..

  Calculate the ev for the next years discount rate

over the last 10 years, the hurdle or discount rate for projects from the firms research and development division has been 10% twice, 15% three times, and 20% the rest of the time. There is no recognizable pattern.

  Do duopolists produce a pareto efficient level of output

Consider two firms that act as Cournot competitors and face the inverse demand function p(.), where p'(Y1 + Y2) 0 i = 1,2.

  What could firm a do to make the threat credible

Show how the payoff matrix in the table for Problem 10 might change if firm A were to make a credible threat to lower the price by building excess capacity to deter frim B from entering the market. (a) indicate the best strategy for each firm.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd