Determine the cost basis of the three cells

Assignment Help Engineering Mathematics

Reference no: EM131506287

Question: A manufacturer of aerospace products purchased three flexible assembly cells for $500,000 each. Delivery and insurance charges were $35,000, and installation of the cells cost another $50,000.

a. Determine the cost basis of the three cells.

b. What is the class life of the cells?

c. What is the MACRS depreciation in year five?

d. If the cells are sold to another company for $120,000 each at the end of year six, how much is the recaptured depreciation?

Reference no: EM131506287

Questions Cloud

Determine the gds and ads depreciation deductions : A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company. The cost basis was $300,000.

What is the depreciation deduction in year three : During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a fair market price of $120,000.

Build on the information you presented : Review the Outline Format and Example reading and the rubric before you begin to ensure you address all necessary requirements.

Describe a typical production system using a company : Describe a typical production system using a company. Describe the most important reports produced by the accounting information system.

Determine the cost basis of the three cells : A manufacturer of aerospace products purchased three flexible assembly cells for $500,000 each. Delivery and insurance charges were $35,000, and installation.

What is the depreciation deduction for the fourth year : A special-purpose machine is to be depreciated as a linear function of use (units-of-production method). It costs $35,000 and is expected to produce 150,000.

Would freudian theory describe hanks eating : Would Freudian theory describe Hank's eating and argumentative behaviors as being internally or externally motivated? Explain the motivation.

Why compliance and ethics programs of companies fall short : Explain how and why the compliance and ethics programs of most companies fall short of addressing global business ethical responsibilities.

What is the bv at the end of year two : A concrete and rock crusher for demolition work has been purchased for $60,000, and it has an estimated SV of $10,000 at the end of its five-year life.

User Account

All Pages