What is the difference in the amount of depreciation

Reference no: EM13214518

A construction company is considering changing its depreciation from MACRS method to 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 purposes is $8,000. The company will use the truck for eight years and will depreciate it over this period of time with SL method. What is the difference in the amount of depreciation that would be claimed in year 5?

Reference no: EM13214518

Questions Cloud

How economic conditions affect the default risk premium : Do you think the default risk premium will likely increase or decrease during the next 6 months? How do you think the yield curve will change during this time? Offer some logic or current reference(s) to support your answers.

Compute the partial pressure of each gas and total pressure : A 3.0 L bulb containing He at 129 mmHg is connected by a valve to a 2.0L bulb containing Ar at 110 mmHg. Calculate the partial pressure of each gas and total pressure after the valve between the flask is opened.

Capital purchases and expansion plans : Increase in demand for funds as well as an increase in inflation will put upward pressure on interest rates and businesses will also reign in on capital purchases and expansion plans in order to keep their operating costs in line.

Compute v40 and do a degree-of-freedom analysis : The object ofthis problem is to determine V40, the required volume ofthe 40% mixture. Calculate V40 and do a degree-of-freedom analysis.

What is the difference in the amount of depreciation : A construction company is considering changing its depreciation from MACRS method to 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 purposes is $8,..

Explain what is the molecular formula of the compound : It has a pressure of 46.3 mmHg and 24.6 C (degrees). what is the molecular formula og the compound

What is the cumulative depreciation through the end of year : Your company has purchased a large new truck tractor for over-the-road use (asset class 00.26). It has a cost basis of $180,000. With additional options costing $15,000, the cost basis for depreciation purposes is $195,000. Its MV at the end of fi..

Compute the depreciation schedule : An asset is purchased for $150,000. The asset is depreciated by using MACRS depreciation and a 5-year recovery period. At the end of the third year of use, the business changes its product mix and disposes of the asset.

Depict an orbital picture for acetylene : draw an orbital picture for acetylene C2H2 label each bond type and indicate type of orbitals involved in each bond.

User Account

All Pages