Compute accumulated depreciation by using MACRS

Assignment Help Accounting Basics
Reference no: EM133068949

Question - On January 1, 2019, Bramble Company, a small machine-tool manufacturer, acquired for $2,030,000 a piece of new industrial equipment. The new equipment had a useful life of 5 years, and the salvage value was estimated to be $80,000. Bramble estimates that the new equipment can produce 15,400 machine tools in its first year. It estimates that production will decline by 2,700 units per year over the remaining useful life of the equipment.

The following depreciation methods may be used: (1) straight-line, (2) double-declining-balance, (3) sum-of-the-years'-digits, and (4) units-of-output. For tax purposes, the class life is 7 years. Use the MACRS tables for computing depreciation.

Required - Compute accumulated depreciation by using MACRS and optional straight-line method for the 3-year period ending December 31, 2021. Ignore present value considerations.

Reference no: EM133068949

Questions Cloud

Calculate the prospective costs of debt : Assume that Angostura had not entered the US marketplace yet but is considering establishing both manufacturing and distribution facilities in the United States
What is the consolidated net income in each of these years : The subsidiary reported net income of $70,000 in 2020. What is the consolidated net income in each of these two years
Calculate paulson wacc using market-value weights : The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 17%, its before-tax cost of debt is 10%, and its marginal tax rate is
Principles of information systems : Discuss the interaction of application software with a computer's hardware and operating system. Compare proprietary software, open-source applications,
Compute accumulated depreciation by using MACRS : Compute accumulated depreciation by using MACRS and optional straight-line method for the 3-year period ending December 31, 2021
What is the wacc for the last dollar : Olsen Outfitters Inc. believes that its optimal capital structure consists of 55% common equity and 45% debt, and its tax rate is 25%.
Compare price risk and reinvestment risk : Compare price risk (interest rate risk) and reinvestment risk in relation to bonds?
Determine the inventory turnover : A company reports the following: Cost of merchandise sold $502,605 AND Average merchandise inventory 59,130. Determine the inventory turnover
Achieving a sustainable competitive advantage : Determine strategies for achieving a sustainable competitive advantage in the marketplace and increasing financial performance.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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