Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please show complete solution and cash flow diagra

Please show complete solution and cash flow diagram Question 1 Needs Grading Company...

50.1K

Verified Solution

Question

Accounting

Please show complete solution and cash flow diagram

image

Question 1 Needs Grading Company A is considering the purchase of a new equipment. This equipment cost $250,000 and will be depreciated using an MACRS GDS recovery period of 5 years. The equipment is expected to have a market value of 550.000 at the end of its estimated 8-year life. What is the depreciation amount on the second year? What is the Book Value at the end of the 3rd year? Assume that the asset will be disposed of in year 3. Question 2 Needs Grading Company B recently acquired a small equipment that costs $20,000. The asset has a life of 8 years and a $2.000 salvage value. What is the BV at the end of year 4 if double declining balance depreciation is used

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