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Using MACRS depreciation, a marginal tax rate of 42%, and an interest rate of 12%, determine the EAW of the product.
Name at least four each of benefits, disband fits, and costs. How could these values be estimated? What are some likely spillovers?
A new university parking structure is being considered. How could these values be estimated? What are some likely spillovers?
What is the benefit/cost ratio if the right-of-way cost is the price paid by government in eminent domain proceedings?
Determine the loss, gain, or recapture of MACRS depreciation on the sale. The ADR is 12 years for this machine.
Compute the accumulated depreciation through year 4 using 7-year MACRS, Straight-line, 150% declining balance and SOYD.
Blank Mind, Inc., just purchased a new psychograph machine for $10,000. The expected resale value after 4 year is $500. Calaculate the book value after 2 years.
Calculate the depreciation schedule using Double-declining balance and SOYD methods.
The microprocessor will have no value after 4 years. Determine the depreciation schedule. What is the book value at the end of the 4 years?
Determine the depreciation schedule for each truck. Determine the book value at the end of each year.
What is the depreciation charge for the fifth year, and what is the book value at the end of the fifth year? Using the 150% declining balance method.
Under the straight-line (pre-1981) method, what depreciation is claimed in year 3? Under the SOYD (pre-1981) method, what depreciation is claimed in year 3?
It also sold real estate for a profit (income, not capital gain) of $40,000. Determine the federal taxes owed by Red Ranger.
Calculate the state and federal taxes owed by ABC. Also, calculate the effective marginal tax rate on ABC's income.
Low Tech, Inc., had revenues of $400,000 in the year just completed. Determine the federal taxes owed by LowTech and the after-tax cash revenues.
What tax is paid without the new product? What tax is paid with the new product? What are the product's marginal and average income tax rates?
mall Tech Manufacturing had overhead expenses of $80,000, depreciation of $55000. What is the taxable income, tax, and ATCF if sales were $235,000 and $635,000?
Find an article in the financial press on a proposed change in the federal tax code. Summarize the firm's, and analyst's perspectives on the proposed change.
Study the depreciation rules as published by the IRS or the appropriate agency of another government. Describe some aspect not covered in this chapter.
A small, profitable construction contractor purchases equipment costing $205,000 in 2003. Determine the depreciation schedule for the equipment.
What is the MACRS recovery period? Contrast the depreciation schedules with and without Section 179-use the 2003 dollar limit.
Expenses (not including depletion allowances) were $2,500,000. What are the percentage depletion and the cost depletion allowances?
The harvest schedule calls for equal amounts of the timber to be harvested each year. Determine the depletion allowance for each of the 5 years.
Western Coal expects to produce 75,000 tons of coal annually. Compute the annual depletion on a cost basis. Compute the annual depletion on a percentage basis.
Some R&D equipment costs $250,000. The interest rate is 10%, and the salvage value is $25,000. Compute the PW of the depreciation deductions.