Compute the revised depreciation

Assignment Help Accounting Basics

Reference no: EM131970808

Problem

Pronghorn Corp purchased a piece of equipment for $65,200. It estimated a 7-year life and $3,000 salvage value. At the end of year 3 (before the depreciation adjustment), it estimated the new total life to be 9 years and the new salvage value to be $4,500.

Compute the revised depreciation. Company uses straight-line depreciation method.

Reference no: EM131970808

Questions Cloud

What is the firm cost of preferred stock : Donaldson Corp. has a marginal tax rate of 40%. What is the firm's cost of preferred stock?

What is the total cost of this financing arrangement : LMN Co. plans to enter into a secured term loan by assigning its receivables of $600,000 with an average maturity date of 30 days.

What is the value of the preferred stock : If the required rate of return is 7.5%, what is the value of the preferred stock?

Calculate the total fee you will pay on this loan commitment : The take down on the loan is 40 percent. Calculate the total fees you will pay on this loan commitment.

Compute the revised depreciation : Pronghorn Corp purchased a piece of equipment for $65,200. Compute the revised depreciation. Company uses straight-line depreciation method.

What is the cost of equity for serenity : Assume SRC would incur flotation costs of 10% when issuing new shares of common stock SRC faces a marginal tax rate of 21%.

How much should she sell each pie for : If she wants to realize a $12,000 profit, how much should she sell each pie for? Assume no sales tax (round to the nearest penny and enter answer like this $9.4

How much money was borrowed : A loan's quirky terms require the first payment to be made at the moment the money is lent.

What is the weighted average cost of capital : Zeolok has a marginal tax rate of 40%. What is the weighted average cost of capital, WACC, for Zeolok?

Reviews

Write a Review

Required(*) Message

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!

Submit Assignment

User Account

All Pages