What is the difference in the amount of depreciation

Assignment Help Business Economics

Reference no: EM13152921

A construction company is considering changing its depreciation from the MACRS method to the historical SL method for a general purpose hauling truck. The cost basis of the truck is $100,000, and the expected salvage value for depreciation purpose is $8,000. The company will use the truck for eight years and will depreciate it over this period time with the SL method. What is the difference in the amount of depreciation that would be claimed in year five (i.e., MACRS versus SL)?

Reference no: EM13152921

Questions Cloud

Outline a microeconomic reform issue : Outline a microeconomic reform issue that is relevant to the Australian economy and how successful do you think these reform measures were and say why referring to some data or research that has been performed?

Redemption qualifies for sale or exchange treatment : The redemption qualifies for sale or exchange treatment, and Ali has no other transactions in the current year involving capital assets?

Explain chemical engineer measured a less-than-expected : During studies of the reaction below, 2 N2H4(l) + N2O4(l) ? 3 N2(g) + 4 H2O(g) a chemical engineer measured a less-than-expected yield of N2 and discovered that the following side reaction occurs

Park hyatt philly discussed in the text : Consider the example of the Park Hyatt Philly discussed in the text. Recall that the full fare is $225, the expected full-fare demand is ~P(27.3), the discount fare is $159, and there are 118 king/queen rooms.

What is the difference in the amount of depreciation : he company will use the truck for eight years and will depreciate it over this period time with the SL method. What is the difference in the amount of depreciation that would be claimed in year five

Budgetary control system : Identify the problem that appear to exist in ferguson and sons manufacturing company's budgetary control system and explain how the problem are likely to reduce effectiveness of the system.

Compute the half-life of a first-order reaction : Calculate the half-life (in s) of a first-order reaction if the concentration of the reactant is 0.0654 M 18.4 s after the reaction starts and is 0.0112 M 82.9 s after the reaction starts.

Would the reward system vary among manufacturers : Would the reward system vary among manufacturers, retailers, distributors, financial organizations and what other characteristics should good performance incentives have?

From an economic prespective the company should : A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find out that consumers won't buy it because they don't like the taste. From an economic prespective, the company should?

User Account

All Pages