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]
11 months 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]11 months 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
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at
xxTIMURxx [149]

Answer:

(a) $34.4

(b) $38.70(Approx).

(c) $61.9524

Explanation:

(a) Current price:

=\frac{D1}{Required\ return-Growth\ rate}

=\frac{2.15\times(1+0.04)}{0.105-0.04}

=\frac{2.15\times 1.04}{0.105-0.04}

      = $34.4

We use the formula:

A=P(1+\frac{r}{100} )^{n}

where,

A = future value

P = present value

r = rate of interest

n = time period

(b) A=P(1+\frac{r}{100} )^{n}

A=34.4(1.04 )^{3}

         = 34.4 × 1.124864

         = $38.6953

         = $38.70(Approx).

(c)  A=P(1+\frac{r}{100} )^{n}

A=34.4(1.04 )^{15}

         = 34.4 × 1.80094351

         = $38.6953

         = $61.9524

3 0
3 years ago
In need of extra​ cash, Troy and Lily decide to withdraw ​$2 comma 100 from their traditional IRA. They are both 40 years old. T
krek1111 [17]

Answer:

Calculate the tax consequence of withdrawal from retirement account.

T and L are 40 years old and decide to withdraw $2,100 from their IRA. They lie in a 35% marginal tax bracket.

Analysis

They are withdrawing some amount from their retirement fund. They have to pay the tax and penalty for early withdrawals from the retirement fund. The withdrawal amount is $2,100 so they have to pay tax on it. The tax rate will be 35% which is their marginal tax bracket.

Calculation of tax consequences if withdrawal amount is $2,100:

Ordinary income tax amount calculates by multiplying the withdrawal amount with the ordinary tax rate.

= $2100 × 35%

= $735

The withdrawal amount attracts the 10% penalty. So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.

= $2100 × 10%

= $210

(NOTE: - T and L have to pay ordinary income tax along with the penalty on their withdrawal because they are withdrawing funds from their IRA before age 59.5.)

Total expenses include the tax amount and penalty charge on withdrawal amount. So, it is calculated as follows:

Total expenses =$735 + $210

Total expenses = $945

Conclusion

Therefore, T and L would incur a tax of $945 on their withdrawal. This $945 is the sum of income tax amount and penalty on withdrawal balance.

8 0
3 years ago
As you move through your career and begin to seek promotions, it is helpful to ______. A. Target and train for specific career p
marishachu [46]

As you advance and seek promotions in your career, you should continue to show commitment to always doing your job in the same way no matter what.

Career refers to a job that a person decides to undertake for a significantly long period of a person's life. A career may lead a person to hold several different but related jobs as he/she continues to advance in a career.

As you move through your career and begin to seek promotions, it is helpful to show commitment to always doing your job in the same way no matter what.

Learn more: brainly.com/question/1763858

4 0
2 years ago
What kind of economy uses a free-enterprise system?
alekssr [168]

Answer:

The U.S. economy is a free enterprise system.

Explanation:

That means that individuals — and not the government — own most of our country's resources.

5 0
2 years ago
You are hoping to buy a new boat 3 years from now, and you plan to save $4,200 per year, beginning one year from today. You will
USPshnik [31]

Answer:

FV= $12,818.4

Explanation:

Giving the following information:

You are hoping to buy a new boat 3 years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest.

To calculate the future value we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {4,200*[(1.052^2)-1]}/0.052 + 4,200= $12,818.4

8 0
3 years ago
Other questions:
  • The ability for a manager to think in abstract terms while envisioning the "big picture" falls into the category of _____, deeme
    6·1 answer
  • Rajiv is a person whose wants are satisfied by using goods and services. Rajiv is a _____.
    12·2 answers
  • After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $703,938 and Allo
    5·1 answer
  • The old Soviet Union devoted enormous resources exclusively to increasing its physical capital​ stock, and yet eventually the in
    7·1 answer
  • John, an executive at a top investment firm, often gets into heated arguments with his boss over differences in work ethics. In
    12·1 answer
  • Crane Company is planning to sell 870000 units for $1.50 per unit. The contribution margin ratio is 20%. If Crane will break eve
    5·1 answer
  • The example approval form in the activity shows that
    13·2 answers
  • You purchased 100 shares of stock value at $55 per share. The stock value increases to $85 per share what was the rate of increa
    12·1 answer
  • Sushi corp. purchased and installed electronic payment equipment at its drive-in restaurants in san marcos, tx, at a cost of $51
    15·1 answer
  • In applying the path-goal theory as a leader, you try to motivate your subordinates by helping them cope with environmental unce
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!