Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a machine can be purchased for $274,000 and used f

A machine can be purchased for $274,000 and used for five years, yielding the following...

80.2K

Verified Solution

Question

Accounting

imageimage

A machine can be purchased for $274,000 and used for five years, yielding the following net incomes. In projecting net incomes, double-declining depreciation is applied, using a five-year life and a zero salvage value. Year 1 $12,500 Year 2 $34,000 Year 3 $50,000 Year 4 $54,500 Year 5 $125,000 Net income Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Answer is not complete. Ending Book Value Computation of Annual Depreciation Expense Beginning Annual Depr. Accumulated Book (40% of Book Depreciation at Value Value) Year-End 274,000 109,600 109,600 164,400 65,760 208,240 98,640 39,456 247,696 59,184 23,673 271,369 35,511 14,204 X 285,573 164,400 98,640 59,184 35,511 21,307 Annual Cash Flows Depreciation Net Cash Flow Year Net income $ (274,000) 12,500 34,000 Cumulative Cash Flow $ (274,000) 50,000 54,500 125,000 109,600 65,760 39,456 23,673 14,204 89,456 78,173 139,204 89,456 167,629 306,833 Payback period = years

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

1. Attenuation is a regulatory mechanism that has been well studied in the E. coli trp...

Accounting
1.2K views

Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of Gourmet Grill Company...

Physics
1.2K views

Based on resistance measurements, what is the expected turns ratio Np/Ns? Based on measurements of Vp/Vs, what...

Mechanical Engineering
1.2K views

One kg of Methance (CH4) is burned with 200% theoretical air. What is the air fuel...

Psychology
1.2K views

Why is it important to move your body (exercise) during the pandemic? Using research evidence and...

Accounting
1.2K views

On January 1, 20X1, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong...

Accounting
1.2K views

The partnership of Dennis and Grover reports the following? information: • Mike Dennis withdrew cash of $151,000...

Physics
1.2K views

4 In Young s experiment the distance between two slits is 1 mm and the...

Accounting
1.2K views

Required information Use the following information for the Quick Study below. (Algo)...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] ...

Accounting
1.2K views

INPUT VALIDATION Describe the types of input edits used for the following data in a...

Accounting
1.2K views

Tax Return Problem Norman and Leslie Beber are married and file a joint return for...