Trust Engineering Company is considering the purchase of a new machine to replace an existing one. The old machine was purchased 5 years ago at a cost of $20,000, and it is being depreciated on a straight line basis to a zero salvage value over a 10-year life. The current market value of the old machine is $14,000. The new machine, which costs $30,000, falls into the MACRS 5-year class and has an estimated life of 5 years. The change in depreciation expense that results from accepting the project and will be considered in the capital budgeting analysis is _____. The MACRS rates for 5-year class are Year 1-20%, Year 2-32%, Year 3-19%, Year4-12%, Year 5-11%, Year 6-6%.
A. $10,500
B. $23,400
C. $44,000
D. $20,000
E. $17,000
Answer: D
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The bond department shows gross sales of $179,000 and cost of goods sold of $46,000 . What is the gross profit of the bond department?
a. $154,000 b. $133,000 c. 67.2% d. 32.8%
Employee stakeholders are concerned with
A. dividends. B. taxes, warranties, and regulations. C. wages, benefits, and job security. D. good citizenship behavior.
As the trustee of a business trust, Dwight is required to
A. distribute the trust's profits. B. assume responsibility for the trust's debts. C. draft a written trust agreement. D. none of the choices.
Garber Corporation had 40,000 shares of $10 par common stock outstanding on January 1, Year 1. On June 1, Year 1 Garber purchased 5,000 shares of its own stock on the open market for $22 per share and held it as treasury stock. On October 1, Year 1 Garber declared and issued a 10% stock dividend. The market value of Garber's stock was $24 per share on October 1. Garber's board of directors declared and paid a cash dividend of $57,750 on December 15, Year 1.Required:a) Show how the purchase of the treasury stock affects the financial statements. AssetsLiabilitiesEquityRevenuesExpensesNet IncomeCashFlow???????b) Show how the issuance of the stock dividend affects each element of the financial statements. AssetsLiabilitiesEquityRevenuesExpensesNet
IncomeCashFlow???????c) Show how the declaration and payment of the cash dividend affect the financial statements.AssetsLiabilitiesEquityRevenuesExpensesNet IncomeCashFlow???????d) What was the per-share cash dividend paid on December 15? What will be an ideal response?