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
iris [78.8K]
3 years ago
5

Del Norte Brick Co. is located near the intersection of Texas, New Mexico, and Mexico. Improved access to the company’s property

is via a small bridge across the Rio Grande. The cost of the bridge was $780,000. Determine the depreciation and book value for year 3 according to the MACRS (Modified Accelerated Cost Recovery System) method.
Business
1 answer:
OLEGan [10]3 years ago
6 0

Answer:

Depreciation for year 3 = $115518

BV = $57798

Explanation:

The modified accelerated cost recovery method employees a classification-based approach to depreciating certain assets, once classified are assigned respective rates of depreciation. for example, assets classified under automobiles, trucks and machinery are treated under 5-year MACRS and will be depreciated at 20%, 32%, 19.2% and so on.

In this question the bridge across Rio Grande being built by Del Norte Brick co is treated under 3-year MACRS, for which the rates are as follows:

33.33% for the first year

44.45% 2nd year

14.81% 3rd year

7.41% 4th year

We have been asked to determine 3rd years' depreciation and book value, determined as follows:

Depreciation year 1: $780000 33.33% = $259974

Depreciation year 2: $780000 44.45% = $346710

Depreciation year 3: $780000 14.81% = $115518

So the depreciation for year 3 = $115518

The book value is calculated as follows:

<em>Book value = cost - accumulated depreciation</em>

BV = $780000 - $722202

BV = $57798

You might be interested in
The payoff matrix represents hypothetical profits that could be earned by two milk sellers who have formed a cartel. each seller
vazorg [7]

For the statement  "The payoff matrix represents hypothetical profits that could be earned by two milk..." and the Milky Mose table  Both will cheat Option C. This is further explained below.

<h3>What is a payoff matrix?</h3>

Generally, payoff matrix is simply defined as when one player's tactics and those of the other are represented in a table called a payoff matrix, they are listed in rows.

In conclusion, In order to get an edge, both parties will engage in dishonesty. As a result, both parties will be tempted to cheat in order to gain an unfair advantage.

The payoff matrix below represents hypothetical profits that could be earned by two milk sellers who have formed a cartel. Each seller must decide if they want to cheat or not to cheat on the production quotas in the cartel agreement. Use the payoff matrix to answer the questions below. Does either member have an incentive to cheat? Heifer's Gold will cheat, but Milky Moo will not. No, neither has an incentive to cheat, Yes, both will cheat. Milky Moo's will cheat, but Heifer's Gold will not

Read more about payoff matrix

brainly.com/question/7656949

#SPJ1

8 0
2 years ago
Suppose an investment offers to triple your money in 24 months (don't believe it). What rate of return per quarter are you being
Natasha2012 [34]

Answer:

30.77%

Explanation:

Assume investment = $1

Assume mount after 24 months = $5

Number of quarters in 24 months = 24/4 = 6

Future value = P*(1+r)^n; Where P is payment, r is interest rate per period, n is number of periods

5000 = 1*(1+i)^6

1*(1+i) = 5^(1/6)

1+i = 1.30766048601

i = 1.30766048601 - 1

i = 0.30766048601

i = 30.77%

So, the rate of return per quarter being offered is 30.77%

8 0
3 years ago
A firm has sales of $1,220, net income of $226, net fixed assets of $544, and current assets of $300. The firm has $101 in inven
Nady [450]

Answer:

11.97%

Explanation:

Common size statement value of inventory is where all accounts are expressed as a percentage of total assets.

Total assets = Net fixed assets + Current assets

= $544 + $300

= $844

Common size statement value of inventory = Inventory ÷ Total assets

= $101 ÷ $844

= 0.1197

= 11.97%

4 0
2 years ago
Which of the following would most likely be considered an expense in a budget?
Liula [17]

Answer:

C

Explanation:

Everything in life is an expense for me

5 0
3 years ago
Government's ability to force people to do things involuntarily is: always beneficial in reducing the deadweight loss in the eco
vaieri [72.5K]
<span>The government's ability to do things in an involuntary fashion is beneficial when it comes to the economic side of things. So in this case, the correct answer would be Beneficial if it is used to improve the economic efficiency.</span>
6 0
2 years ago
Other questions:
  • As Bart Brownlee approached retirement, he decided the time had come to invest some of his nest egg in a conservative fund. He c
    5·1 answer
  • Pessimism Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of
    12·1 answer
  • Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufactu
    15·1 answer
  • Which of the following statements is CORRECT?
    6·1 answer
  • Stephen Hemmerling was a driver for the Happy Cab Co. Hemmerling paid certain fixed expenses and abided by a variety of rules re
    14·1 answer
  • Seven years ago, Goodwynn &amp; Wolf Incorporated sold a 20-year bond issue with a 14% annual coupon rate and a 9% call premium.
    5·1 answer
  • Far Side Corporation is expected to pay the
    14·1 answer
  • ILL GIVE BRAINLIEST!! HELP ASAP!!
    12·1 answer
  • Exercise 12-1 Payback Method [LO12-1] The management of Unter Corporation, an architectural design firm, is considering an inves
    6·1 answer
  • What is the main difference between probing questions and solution-oriented questions?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!