What is the value of the asset for depreciation purposes

Assignment Help Other Subject
Reference no: EM132716082

Question: 1) A project requires the purchase of new equipment at a cost of $18,000, which will be depreciated over the life of the asset. A further $5000 spent on transport and installation will be added to the purchase price of the equipment for depreciation purposes, and $1000 will be spent on advertising and other operating expenditure to get the project up and running. What is the value of the asset for depreciation purposes?

2) A project will increase revenue from $1.9 million to $2.6 million. Wages are 50% of revenue. Maintenance on the machine will be $25,000 less than it is on the machine that will be replaced. What is the incremental revenue that will result from accepting this project? (Hint: This is tricky. Read the question carefully to be sure you understand exactly what this question is asking for.)

3) A machine with a purchase price of $11,000 is to be depreciated over its useful working life of 6 years to a book value of zero, using straight-line depreciation. What is the book value of the machine after 3 years?

4) A machine with a purchase price of $6,000 is to be depreciated over its useful working life of 10 years to a book value of zero, using diminishing value depreciation. What is the amount of depreciation in Year 1?

Reference no: EM132716082

Questions Cloud

How much cash will increase during the month of march : Adelphi Company has budgeted activity for March to reflect net income $195,000. All sales are credit sales. Receivables are planned to increase (decrease -).
What is the value of the asset for depreciation purposes : A project requires the purchase of new equipment at a cost of $18,000, which will be depreciated over the life of the asset. A further $5000 spent on transport
Prepare the journal entries to update depreciation : Prepare the journal entries to (a) update depreciation to July 31, 2017, and (b) record the sale of the equipment. (Credit account titles are automatically).
How manual journals would impact your financial statements : For marking purposes, please make sure your manual journal narration is: Wheel aligner paid for by personal credit cardIt's always a good idea to look.
What is the value of the asset for depreciation purposes : A project requires the purchase of new equipment at a cost of $18,000, which will be depreciated over the life of the asset. A further $5000 spent on transport
Determine the amount of gross gifts : A donor made the following donations during 2018: To Abel, a car worth 800,000, To Jen, a condominium worth 3,000,000 in Macau.
What is the overall use of target weights : What's the overall use of target weights to calculate the weighted average cost of capital and what's the use of historical weights to calculate the weighted.
Prepare adjustment journal entries for the events : Flexi Ltd owns all the share capital of Jason Ltd. The following transactions relate to the period ended June 2020. On 1 July 2019, Flexi sold a motor vehicle.
Prepare the general journal entries for blair : On 1 September 2020, Blair Ltd purchases for speculative purposes a 90-day bank-accepted bill futures contract (2,500 Units) at 87.50.

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

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