1. Fredrick Corp is going to purchase and install a new piece of machinery for $
ID: 1211933 • Letter: 1
Question
1. Fredrick Corp is going to purchase and install a new piece of machinery for $300,000 with an additional $25,000 in sales tax. This piece of machinery has additional costs such as transit and insurance during transit of $1,000. Additionally, Fredrick Corp need to pay $10,000 for site preparation, machine installation, and testing prior to use. What is the cost basis for this equipment? 2.Find the annual depreciation allowances (Da) and the book values (Bn) using a) straight line depreciation and b) double declining method if you are given a cost of $200,000, a useful life of 6 years, and a salvage value of $20,000. 3 You have three alternative with the same service life. You cannot have "do nothing" and an option. Select an option using incremental investment BC() $500 $150 $150 $600 $350 $150 $700 $200 $200 You have a program that you want to implement but you must decide by benefit cost analysis if it is justifiable. You have the additional information. 4. Cost: $10,000 . Annual Benefits: $120,000 .Annual Cost: $55,000 Rate: 7% Study period: S years .Explanation / Answer
1. Cost Basis = purchase cost + sales tax + freight + installation & testing = 300000 + 25000 + 1000 + 10000 = $336000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.