Develop the depreciation using the marcs method

Assignment Help Financial Management
Reference no: EM131317078

Given:

Initial Cost, B=$120,000

Salvage Value, S=$20,000

Property is a five year property.

Compute the second-year depreciation for this asset using:

a. SL method (straight line)

b. SOYD method (sum-of-years)

c. DDB method (double declining balance)

Then develop the depreciation using the MARCS method.

Reference no: EM131317078

Questions Cloud

Obtained expected after-tax rate of return on equipment : JET FAB bought a CNC laser cutting machine at a cost of $400,000 to meet the specific needs of customer that had given a 4-year contract with the possibility of extending the contract for another 4 years. Determine if the company obtained the expecte..
Calculate the tax cost of partnership earnings this year : Kari is a partner in Lizard Partnership. This year, Kari's share of partnership ordinary income is $20,000 and she received a cash distribution of $30,000. Kari's tax basis in her partnership interest at the beginning of the year was $50,000. Her mar..
Potential violations of aicpa code of professional conduct : The following is a list of potential violations of the AICPA’s Code of Professional Conduct. Stapleton, CPA, is unable to perform a service requested by a client. Therefore, Stapleton refers the client to Edith, who pays Stapleton $200 for referring ..
What is the standard deviation of the analysts profit : Assume a market index represents the common factor and all stocks in the economy have a beta of 1. Firm-specific returns all have a standard deviation of 36%. What is the expected return (in dollars), and what is the standard deviation of the analyst..
Develop the depreciation using the marcs method : Compute the second-year depreciation for this asset using: Then develop the depreciation using the MARCS method.
Bondholder rate of return and the bond yield to maturity : What is the relationship between a bondholder's rate of return and the bond's yield to maturity if he does not hold the bond until it matures?
What must the coupon rate be on bonds : Barnes Enterprises has bonds on the market making annual payments, with 16 years to maturity, a par value of $1,000, and a price of $968. At this price, the bonds yield 8 percent. What must the coupon rate be on the bonds?
Compute the standard estimator of volatility parameter : Consider the following collection of n=9 closing prices for stock ABC: 101.02, 102.23, 100.34, 99.87, 98.65, 96.45, 98.45, 99.00, 100.05. Compute the standard estimator of the volatility parameter \sigma using these closing prices.
Properties have appreciated at annual rate of approximately : You are considering an option to purchase or rent a single-family residential property in Destin, FL. You can rent it for $13,500 per year, and the owner would be responsible for maintenance, property insurance, and property taxes. Properties have ap..

Reviews

Write a Review

Financial Management Questions & Answers

  Assume constant interest-for how much did you purchase bond

Consider a bond paying $100 at the end of every year for 20 years at the end of the 20 years the bond pays $1000. Suppose 2 years after you purchase this bond you you can sell it for $1600(That is just paid its second coupon) Assume constant interest..

  What would be before-tax component cost of debt

Oberon, Inc., has a $40 million (face value) 10-year bond issue selling for 97 percent of par that pays an annual coupon of 8.15 percent. What would be Oberon’s before-tax component cost of debt? (Round your answer to 2 decimal places.) Cost of debt ..

  Medical expenses-preferred provider organization plan

Margo, age 35, was severely injured in an auto accident. She is covered under her employer’s preferred provider organization (PPO) plan. The plan has a $1000 calendar-year deductible, 80/20 percent coinsurance, and an annual out-of-pocket limit of $3..

  Discuss the differences in the benefits to farmers

Which policy is least efficient? Discuss the differences in the benefits to farmers and the cost to the government.

  Begin paying annual dividends

NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.37 a share. The following dividends will be $0.42, $0.57, and $0.87 a share annually for the following three years, respec..

  Smaller stocks have lower returns than larger stocks

On average, smaller stocks have lower returns than larger stocks? On average, Treasury bills have higher returns than stocks. Portfolios of smaller stocks are typically lss volatile than individual small stock

  Accumulated some money for your retirement

You have accumulated some money for your retirement. You are going to withdraw $88,095 every year at the end of the year for the next 27 years. How much money have you accumulated for your retirement? Your account pays you 5.02 percent per year, comp..

  Firm uses its excess cash to complete a stock repurchase

A firm has a market value equal to its book value. Currently, the firm has excess cash of $300 and other assets of $6,200. Equity is worth $5,000. The firm has 500 shares of stock outstanding and net income of $720. What will the new earnings per sha..

  A differential analysis

A differential analysis: A. can be used to compare an alternative to the status quo. B. can be used to compare any set of alternatives. C. is easier to comprehend if a consistent frame of reference is employed. D. B and C. E. A, B, and C.

  Project is expected to produce cash flows

A project is expected to produce cash flows of $5,000, $8,000, and $16,000 over the next three years, respectively. After three years, the project will be discontinued. What is this project worth today at a discount rate of 15 percent?

  The banks return on equity being reduced to zero

Suppose that a bank has $5 billion of one-year loans and $35 billion of five-year loans. These are financed by $35 billion of one-year deposits and $5 billion of five-year deposits. The bank has equity totaling $2 billion and its return on equity is ..

  Good idea for international portfolio of securities

In two pages explain why you feel that alternative investments are a good idea for an international portfolio of securities. Provide information about alternative assets and alternative strategies you may use in your investment management process.

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