1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sergij07 [2.7K]
1 year ago
6

the xyz block company purchased a new office computer and other depreciable computer hardware for $12,000. during the third year

, the computer is declared obsolete and is donated to the local community college. using an interest rate of 10%, calculate the pw of the macrs depreciation deductions. assume that no salvage value was initially declared and that the machine had a depreciable life of 5 years.
Business
1 answer:
Serhud [2]1 year ago
3 0

Present worth is $7,944 ( Considering some assumptions )

Depreciation is the reduction in the value of asset due to wear and tear. Depreciation is charged only on fixed asset on a straight line or on a fixed rate per year.

Computer and other hardware of $12,000 to be depreciated over 5 years with no salvage value

<u>Depreciation </u><u>per year = ( Cost of Asset - Salvage value ) / Useful life </u>

= ($12,000 - $0) / 5 = $12,000/5 = $2,400 per year

It is assumed that the assets are donated at the end of third year and depreciation of that year is fully charged.

Depreciation for 3 years = $2,400 x 3 = $7,200

Now As all these event happened in the past and it is assumed that we are standing at the end of year 3, the present worth of the all these depreciation is actually the future value of these deduction because it was made earlier.

Present worth of depreciation is as follows

Present Worth = [$2,400 x (1+0.1)^2 ] + [$2,400 x (1+0.1)^1 ] + [$2,400 x (1+0.1)^0 ] = $2,904 + $2,640 + $2,400 = $7,944

Third deduction was made at the date when worth is being calculated.

read more about depreciation

brainly.com/question/1203926

#SPJ4

You might be interested in
Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative preferred stock. The board of directors o
vlabodo [156]

Answer:

The amount of dividends paid to common stockholders in 2021 $18000.

Explanation:

The cumulative preferred stock is the stock that accumulates dividends when the dividends are partially or not paid at all in a certain year. The dividends must be paid in the future.

The common stock holders are paid after the preferred stockholders are paid.

The preferred stock dividend per year = 400000 * 0.06 = $24000 per year

As the cash dividends paid in 2019 and 2020 are $20000 each,

The dividend outstanding on preferred stocks for 2019 is = 24000 - 20000 = $4000

Similarly, the dividends outstanding on preferred stocks for 2020 is = 24000 - 20000 = $4000

The total dividends outstanding at start of 2021 = 4000 + 4000 = $8000

Preferred dividend for 2021 = 24000

Total dividend on preferred stock = 24000 + 8000 = $32000

The amount of dividends that common stock holders will receive in 2021 = 50000 - 32000 = $18000

4 0
3 years ago
If earnings are expected to grow at a constant rate over time of 0.03 and investors' rate of discount is constant at 0.04, and i
Usimov [2.4K]

Answer:

The answer is $15,656

Explanation:

Formular: P = D * \frac{1 + g}{k - g}

P represent estimated stock price or value = ?

D represent last dividend paid = $152

k represent discount rate = 0.04

g represent growth rate = 0.03

Using the fomular above; P = $152 * \frac{1 + 0.03}{0.04 - 0.03}

P = $152 * \frac{1.03}{0.01}

P = $152 * 103 = $15,656

:. The fundamental value of the stock market would be $15,656

7 0
3 years ago
Match each item with a statement below. 1. Defines roles and responsibilities for information security 2. Too risky for most bus
ValentinkaMS [17]

Answer:

1 and 6,  3 and 4, 8 and 9, 2 and 7

Explanation:

1 and 6: For developing IR policy, roles and responsibilities for informatino security must be clearly defined

3 and 4: a single trainer working with multiple trainees is trainees receiving presentation

8 and 9: An online resource for IR can serve as a training case for staff

2 and 7: an unsual pattern in a system log can be risky for the business

3 0
3 years ago
Read 2 more answers
OneChicago has just introduced a single-stock futures contract on Brandex stock, a company that currently pays no dividends. Eac
-Dominant- [34]

Answer: 299750

Explanation:

Based on no-arbitrage approach, future price should be equal to spot price compounded by risk-free rate.

Spot price = $110

Risk-free rate = 9%

Future price = 110*(1+9%) = 119.9

For 2500 shares = 119.9*2500 = 299750

3 0
3 years ago
How does good health contribute to career success?
Dahasolnce [82]
It allows for one to live a healthier, happier, positive, successful life. Good health permits a stronger body and therefore better performance in the work place and an overall sense of optimism. 

xx :)
7 0
3 years ago
Other questions:
  • The margin of safety is the amount that sales can drop before the company incurs a loss.
    5·1 answer
  • You are driving a car that does not have anti-lock brakes (abs). if the road is slippery and you need to make an emergency stop,
    13·2 answers
  • Consider the following two mutually exclusive alternatives for reclaiming a deteriorating inner-city neighborhood (one of them m
    11·1 answer
  • How can competition in a scarce labor market affect wages?
    10·1 answer
  • Which of the following statements is FALSE?
    12·1 answer
  • A false statement of a material fact regarding ownership of business property that results in a loss of sales is referred to as
    13·1 answer
  • Part E14 is used by M Corporation to make one of its products. A total of 22,000 units of this part are produced and used every
    12·1 answer
  • Preferred Stock As of December 31, 2015, we had one class of preferred stock outstanding. We are authorized to issue approximate
    15·1 answer
  • Buff is considering a new packaging machine. The initial cost is $10,000 and we would save $4,000 per year in labor costs. If ou
    7·1 answer
  • Many employment contracts have mandatory arbitration clauses.<br><br><br> False<br><br> True
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!