Questions from Engineering

Q: Under the General Depreciation System (GDS) of asset classification,

Under the General Depreciation System (GDS) of asset classification, any asset that is not in a stated class is automatically assigned a recovery period of: (a) 5 years (b) 7 years (c) 10 years (d) 15...

Q: All of the following statements about the Alternative Depreciation System (ADS

All of the following statements about the Alternative Depreciation System (ADS) are true, except: (a) The half-year convention applies (b) Salvage value is neglected (c) The recovery periods are short...

Q: South African Gold Mines, Inc. is writing off its $

South African Gold Mines, Inc. is writing off its $210 million investment using the cost depletion method. An estimated 700,000 ounces of gold are available in its developed mines. This year 35,000 ou...

Q: Rayonier Forrest Resources purchased a small tract of timberland for $70

Rayonier Forrest Resources purchased a small tract of timberland for $70,000 that contained 25,000 trees. The value of the bare land was estimated to be $20,000. The annual percentage depletion factor...

Q: A stone and gravel quarry in Texas can use a percentage depletion

A stone and gravel quarry in Texas can use a percentage depletion rate of 5% of gross income, or a cost depletion rate of $1.28 per ton. Quarry first cost = $3.2 million; estimated total tonnage = 2.5...

Q: Wilson Partners manufactures thermocouples for remote temperature monitoring of electronics applications.

Wilson Partners manufactures thermocouples for remote temperature monitoring of electronics applications. The current system has a fixed cost of $400,000 per year and a variable cost of $10 per unit....

Q: The total mechanical and electrical unit costs for a library are listed

The total mechanical and electrical unit costs for a library are listed as $40 per square foot, while total project cost is estimated at $119 per square foot. Based on these values, the percentage of...

Q: The 3-year MACRS recovery rates are 33.33%,

The 3-year MACRS recovery rates are 33.33%, 44.45%, 14.81%, and 7.41%, respectively. (a) What are the corresponding rates for the alternative MACRS straight line ADS method with the half-year conventi...

Q: The cost for constructing a small building in 1999 was $700

The cost for constructing a small building in 1999 was $700,000. The construction cost index was 6059 at that time. The estimated cost of a similar building when the index value is 10,000 is closest t...

Q: An assembly line robot arm with a first cost of $75

An assembly line robot arm with a first cost of $75,000 in 2001 had a cost of $89,750 in 2017. If the equipment cost index for robots was 307 in 1995 and the robot cost increased exactly in proportion...