Depletion and depreciation, economics, Microeconomics

Assignment Help:
During its current tax year (year one) a pharmaceutical company purchased a mixing tank that had a fair market price of $120,000. It replaced the an older, smaller mixing tank that had a BV of $15,000. Because a special promotion was underway, the old tank was used as a trade-in for the new one, and the cash price (including delivery and installation) was set at $99,500. It was assumed that the new mixing tank has a useful life of 9 years.

A. What is the depreciation cost in year three and BV at the end of year four of the new mixing tank? Use (a) SLM (b) SYDM and (c) Sinking Fund if i = 7%.

B. If Declining Balance depreciation has been applied on this problem, what would be the cumulative depreciation through the end of year four?

Related Discussions:- Depletion and depreciation, economics

Aggregate demand and supply , using the aggregate demand and supply model (...

using the aggregate demand and supply model (x axis is national output and y axis is price level) if an economy is in a state of disequilibrium where supply is excess of demand u

Economic problems, economic problems are faced by all types of economies bu...

economic problems are faced by all types of economies but they are dealt with differently in different types of economies.discuss

Traditional food processing methods, discuss african traditional methods of...

discuss african traditional methods of production and processing of food

Supply of labour, use a graphical illustration to briefly describe what the...

use a graphical illustration to briefly describe what the influence of an increase in immigrants would be on the market supply of labour

Demand for the big mac on the rise, illustrate and explain the changing dem...

illustrate and explain the changing demand for big mac using the indifference curve and budget line

Economic growth, a.  Referring to the table below and using the "Rule of 70...

a.  Referring to the table below and using the "Rule of 70," comment on long-term changes in the standard of living in the United States?  b.  Would you rather live in the Unite

The great depression, How did fixed exchange rates and the Golden Standard ...

How did fixed exchange rates and the Golden Standard affect the U.S. economy as well as other countries.

Explain the factors which would affect the price of a good, Explain the fac...

Explain the factors which would affect the price of a good. As there is a very long list of determinants, the basic issue is for the student to describe and illustrate how shif

Duality, duality was used in comparative static approach in assessing the d...

duality was used in comparative static approach in assessing the direction of change on economic variables . Why do we need duality and under what condition may duality can''t be u

Cyclical fluctuations, Cyclical Fluctuations: Consider a situation whe...

Cyclical Fluctuations: Consider a situation where the value of money above trend indicates an unexpectedly high level of money in the recent past. The model predicts that this

Write Your Message!

Captcha
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