Questions from Engineering

Q: Benjamin used regression analysis to fit quadratic relations to monthly revenue,

Benjamin used regression analysis to fit quadratic relations to monthly revenue, R, and total cost, TC, data with the following results, where Q is quantity. R = −0.008Q2 + 32Q TC = 0.005Q2 + 2.2Q + 1...

Q: All of the following assets can be depreciated, except:

All of the following assets can be depreciated, except: (a) A bulldozer (b) A copper mine (c) A surgical robot (d) A conveyor belt

Q: Classic straight line depreciation of a $100,000 asset takes

Classic straight line depreciation of a $100,000 asset takes place over a 5-year recovery period. If the salvage value is 15% of first cost, the depreciation charge for year 3 is closest to: (a) $17,0...

Q: A commercial generator with an unadjusted basis of $50,000

A commercial generator with an unadjusted basis of $50,000 is straight-line depreciated over a 5-year period. The asset will have an AOC of $35,000 and a salvage value of $10,000. The book value at th...

Q: A motorized cultivator with a first cost of $28,000

A motorized cultivator with a first cost of $28,000 and salvage value of 25% of the first cost is depreciated by the DDB method over a 5-year period. If the operating cost is $43,000 per year, the dep...

Q: An 8-year recovery-period conveyor system for grading eggs

An 8-year recovery-period conveyor system for grading eggs is planned for DDB depreciation. The system had a first cost of $30,000 with a $9000 salvage value. The annual operating cost allocated to th...

Q: Use the computations in Equations [16A.11] through [

Use the computations in Equations [16A.11] through [16A.13] to determine the MACRS annual depreciation for the following asset data: B = $50,000 and a recovery period of 7 years

Q: Gisele is performing a make/buy study involving the retention or

Gisele is performing a make/buy study involving the retention or disposal of a 4-year-old machine that was to be in production for 8 years. It cost $500,000 originally. Without a market value estimate...

Q: A currently-owned asset has B = $150,000

A currently-owned asset has B = $150,000, S = $95,000, and a 10-year depreciable life. The book value at the end of year 3 according to the MACRS method would be closest to: (Note: dt values for years...

Q: An industrial robot that is depreciated by the MACRS method has B

An industrial robot that is depreciated by the MACRS method has B = $60,000 and a 5-year depreciable life. If the depreciation charge in year 3 is $8640, the salvage value that was used in the depreci...