Compute annual depreciation allowances and book values

Assignment Help Econometrics
Reference no: EM13198753

Consider the following data on the asset:

Cost of the asset, I = $100,000
Useful life, N = 5 years
Salvage value, S = $10,000

a. Compute the annual depreciation allowances and the resulting book values, using the straight-line depreciation method. List Bn and Dn values for year 4.

b. Compute the annual depreciation allowances and the resulting book values, using the double-declining balance method. List Bn and Dn values for year 4.

Reference no: EM13198753

Questions Cloud

Misrepresentation is an effective action : "Misrepresentation is an effective action for a claim of remedies by a party who has been induced to enter into a countract by statement of facts that are untrue and such statement has not been included as a term in the contract." Comment on the vali..
Compute the investment of the investment : The InterCell Company wants to participate in the upcoming World Fair. To participate, the firm needs to spend $1 million in year zero to develop a showcase. The showcase will produce a cash flow of $2.5 million at the end of year one.
Employers to lay off workers-lower wages and raise prices : advised employers to lay off workers, lower wages, and raise prices. asked businessmen to pledge not to lay off workers but instead to reduce working hours in order to equalize the sacrifice for all employees.
What is quick''s net cash flow after tax : a. What is Quick's taxable gains b. What is Quick's taxable income c. What is Quick's marginal and effective (average) tax rate d. What is Quick's net cash flow after tax
Compute annual depreciation allowances and book values : Consider the following data on the asset: Cost of the asset, I = $100,000 Useful life, N = 5 years Salvage value, S = $10,000 a. Compute the annual depreciation allowances and the resulting book values
Who among the three will make the investment : Alvin's utility function is U(W) = W. Barry's utility function is U(W) = W^2. Carl's utility function is U (W )= sqrt(W) . Each has wealth of only $100. An investment of that $100 has a 10% chance of netting $1,000 and a 90% chance of netting a lo..
Increase the environmental lapse rate : Which of the following would increase the environmental lapse rate?
Who among the three will make the investment : Alvin's utility function is U(W) = W. Barry's utility function is U(W) = W^2. Carl's utility function is U (W )= sqrt(W) . Each has wealth of only $100. An investment of that $100 has a 10% chance of netting $1,000 and a 90% chance of netting a lo..
Script for radio ad-promotes healthy musculoskeletal system : Radio Ad Write a 150- to 200-word script for a radio ad that promotes a healthy musculoskeletal system in old age. Address the risk factors for arthritis, osteoporosis, and injuries from falls. • Incorporate prevention strategies such as proper nutri..

Reviews

Write a Review

Econometrics Questions & Answers

  What is the dollar value of the total surplus

Assume the following values for Figures 5.4a and Figures 5.4b. Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The market equilibrium price is $45 per bag. The price at a is $85 per bag. The price at c is $5 per bag. The price at f is $59 per bag.

  Determine first withdrawal occurs at the end of six months

What quarterly deposit must be made at the end of each quarter until Corey retires so that he can make a withdrawal of $40,000 semiannually over the first 10 years of his retirement. Assume that his first withdrawal occurs at the end of six months..

  How much should to deposit on each birthday

They want to deposit the sum in an account that earns 8% compounded continuously. Beginning when she turns 6 and ending when she turns 21, how much should they deposit on each birthday if she is to get $28,000 on each birthday from her 21st to her..

  What is the value of the gdp deflator in 2002

if real GDP in 2002 were $10,048.8 billion and nominal GDP in 2002 were $10,049.6 billion calculate the percentage change from 2001 to 2002 in nominal GDP, real GDP and price level. What is the value of the GDP deflator in 2002

  What is its economic life for salvage values and o&m costs

A $40,000 machine will be purchased by a company whose interest rate is 12%. The installation cost is $5K, and the removal costs are insignificant. What is its economic life if its salvage values and O&M costs are

  Determine total benefit and total cost from an activity

Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q) = 28Q - 5Q^2 and C(Q) = 100 + 8Q. (Note: MB(Q) = 28 - 10Q and MC(Q) - 8.)

  Provide an argument against the proposal

The manager of the company's pension fund is compensated based entirely on fund performance; he earned $1.2 million last year. As a result, the fund is contemplating a proposal to cap the compensation of fund managers at $100,000.

  Describe the shape of isoquant decreasing returns to scale

Suppose the number of points on an economics midterm (P) can be characterized by the following production function: P = 10H - 4B where H is the number of hours spend studying and B is the number of beers in the week prior to the midterm.

  What is the absolute size of the public debt in year 4

Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget deficit of $20 billion in year 3, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year 4.

  What happens to output if govt purchases are increased

This question considers a closed economy Keynesian model that is augmented to include transfers payments to consumers (Tr = Transfers) that increase consumers' disposable incomes and lower government savings.Derive and calculate the Keynesian mult..

  Determine the profit maximizing price and output

After analysis of the business, the manager has determined that weekly demand can be approximated by Q = 25,000 - 1000P. The firm's cost function is C = 25,000 + 13Q + .002Q2, where Q is output per week. Determine the profit maximizing price and ou..

  Determine the amount in the fund immediately

Five annual deposits in the amounts of ($1,200, $1,000, $800, $600, and $400) are made into a fund that pays interest at a rate of 9% compounded annually. Determine the amount in the fund immediately after the 5th deposit

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