Calculate the depreciation and the book value

Assignment Help Microeconomics
Reference no: EM132173494

Question: The initial cost of equipment is $1,000,000. Assuming a life of five years and a resale value of $200,000,

a. Calculate the depreciation and the book value of this equipment for the next 7 years. Use both straight-line and double declining balance depreciation methods.

b. If the equipment is sold at year 4 for $400,000, what is the capital gain or loss using both of the above mentioned methods of depreciation?

Reference no: EM132173494

Questions Cloud

What is the rate of return of investment at a given marr : A service line of business has an initial non-depreciable investment of $500,000 and an annual net income of $100,000. It operates for 10 years with no resale.
Which the employer violated the EPPA or FCRA : Submit a 3-5 page paper on employee privacy rights, especially a situation in which the employer violated the EPPA or FCRA, if applicable.
Do you think you could store everything you produce : Do you think you could store everything you produce in your academic career in a single cloud storage account?
Calculate the number of employees : The wages are equal to 0.5. The question asks to calculate the number of employees? and How to allocate them between industries?
Calculate the depreciation and the book value : Calculate the depreciation and the book value of this equipment for the next 7 years. Use both straight-line and double declining balance depreciation methods.
What are the risks associated with logging too many events : When the default configuration is to create audit logs, what impact can this have on security incident investigations?
What is the net present worth of the operation : An investor is purchasing a car repair facility with an initial cost of $90M. The facility will have before tax profit of $25M/Yr the first two years.
Explain how ingratiation helps a negotiator : When is it a good idea to let others draw their own conclusion? When is it dangerous to let others draw their own conclusions?
Reduction in the money supply on the economy : You may assume that the economy begins in long-run equilibrium. Be sure to show that impact on output and the price level on both the short and the long run?

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain the major risks involved in subcontractor contracts

Explain the major risks involved in subcontractor contracts. Then, determine which of the risks involved holds the most risk to the subcontractor. Support your response with evidence or examples.

  What they are trying encourage or discourage

Explain what the incentive is, who is offering it, and what they are trying encourage or discourage. Does the incentive work?

  How to calculate growth rates of velocity-money supply

If inflation and nominal interest rates are constant, at what rate, if any, will velocity grow Given a permanent (once and for all) rise in level of interest rates, how will it affect the level of velocity and the growth rate of velocity

  What are the primary ways one can protect themselves

What are the primary types of risk that investors or companies exposed to when dealing in the international financial markets What are the primary ways one can protect themselves from this risk

  Method for promo ring global economic growth

Which of the following is NOT a method for promo ring global economic growth?

  What is meant by rationality

What are the costs of making those "systematic mistakes"? Is it possible to act "irrationally," or is rationality defined by the individual's approach to decision making?

  Are results in line with predictions from economic theory

The catch-phrase of the EITC is "Make work pay." To what extent does the EITC achieve its goal of encouraging work among low-income individuals?

  Determining level of output and profit

Suppose a firm in the short run under perfect competition with P=250, TC=1,000 + 100Q + 2.5Q^2 , and MC=10+5Q-Find out the level of output that the firm needs to produce to maximize profits?

  Mutual fundsa take in deposits from savers and make direct

mutual fundsa take in deposits from savers and make direct loans to borrowers.b provide another source for borrowers to

  Discuss case related to the cigarette taxes

Cigarette Taxes, Black Markets, and Crime: Lessons from New York's 50-Year Losing Battle New York City has the highest cigarette taxes in the United States.

  Explain cost of various sources of capital including debt

explain cost of various sources of capital including debt preferred stock common stock and retained earnings. also

  What incentives exist under a capitation system for provider

explain why a capitation payment system might provide incentives for physicians to be more efficient than they would be under traditional FFS systems. What incentives exist under a capitation system for providers to provide the appropriate quality..

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