The straight-line method-double-declining-balance method

Assignment Help Financial Management

Reference no: EM131075683

Razar Sharp Company purchased equipment on July 1, 2014, for $51,300. The equipment was expected to have a useful life of three years, or 4,320 operating hours, and a residual value of $1,620. The equipment was used for 800 hours during 2014, 1,500 hours in 2015, 1,300 hours in 2016, and 720 hours in 2017. Required: Determine the amount of depreciation expense for the years ended December 31, 2014, 2015, 2016, and 2017, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount 2014 $ 0 2015 $ 2016 $ 2017 $ b. Units-of-output method Year Amount 2014 $ 2015 $ 2016 $ 2017 $ c. Double-declining-balance method Year Amount 2014 $ 2015 $ 2016 $ 2017 $

Reference no: EM131075683

Questions Cloud

Considering average-risk investment in mineral water : The Rodriguez Company is considering an average-risk investment in a mineral water spring project that has a cost of $130,000. The project will produce 800 cases of mineral water per year indefinitely. What is the NPV of the project? Do not round int..

What is her capital gain on the property : A few years ago, Kate purchased a small apartment building for $500,000 and made capital improvements which cost $90,000. During this period, she also claimed $45,000 in depreciation on her tax returns. If she sells the apartment building for $610,00..

What is the property net operating income : The potential gross income for an office building is $110,000, with an allowance for vacancies of 9%. If operating expenses are $26,000 per year, and the debt service is $34,000 per year, what is the property’s net operating income (NOI)?

Pay for the roof in cash at that time : A contractor has told you that the roof on your office building will need to be replaced in 5 years at a cost of $160,000. You’d like to pay for the roof in cash at that time. How much will you need to set aside at the end of each month to reach your..

The straight-line method-double-declining-balance method : Razar Sharp Company purchased equipment on July 1, 2014, for $51,300. The equipment was expected to have a useful life of three years, or 4,320 operating hours, and a residual value of $1,620. Determine the amount of depreciation expense for the year..

What is the current value of the company-levered value : Cavo Corporation expects an EBIT of $19,750 every year forever. The company currently has no debt, and its cost of equity is 15 percent. The corporate tax rate is 35 percent. What is the current value of the company? What will the value of the firm b..

The account pays nominal annual rate : You want to make a deposit at the end of each month so you will have $4697 in your account at the end of 6 years. The account pays a nominal annual rate of 9% compounded monthly. How much do you have to deposit each month to achieve your goal?

What is the probability that european call option on stock : A stock price follows a geometric Brownian motion with an expected return of 15% and a volatility of 30%. The current price is $39. What is the probability that a European call option on the stock with an exercise price of $40 and a maturity date in ..

What is the amount of capital spending : Awnings Incorporated has beginning net fixed assets of $560 and ending net fixed assets of $720. Assets valued at $210 were sold during the year. Depreciation was $50. What is the amount of capital spending?

User Account

All Pages