KINDLY PRINT YOUR NAME In order to get partial credit for the problems, kindly s
ID: 2331700 • Letter: K
Question
KINDLY PRINT YOUR NAME In order to get partial credit for the problems, kindly show all your steps including equations and caleulations Problem 1. A Fantastic Taxi Company purchased 3 new Tasi Cabs from a car dealership for $29,000 per Each Nee Taui cost them another $1,000 for Each Taxi Cap to install in it a special Customer Charge Meter. The 3 New Taxi Cabs were sold after 2 years only of operations. Calculate: A) All the depreciation amounts for the 3 New Taxi Cabs over their useful liftines by using the 200% Decimeelne mthod S Points. B) All the depreciation amounts for the 3 New Taxi Cabs over their useful lifetimes by using the Straight-Line method 4 Points C) All the depreciation amounts for the 3 New Taxi Cabs over their useful lifetimes by using the MACRS-GDS method. 6Points D) All the depreciation amounts for the 3 New Taxi Cabs over their useful lifetimes by using the MACRS-ADS method 6 Points Kindly use the following table to fill the required amounts after you have shown ALL the equations and calculations below it in order to answer the above questions, Fill only the required columns and rows with the required Depreciation Amounts EOY 200% Declining-Balance Method Depreciation MACRS-GDS Method Depreciation Method Depreciatio MACRS-ADS Straight-Line Method Depreciation.Explanation / Answer
Useful life = 5 years
Cost of three cars-$ (29000+1000)*3= $90000
1.For 200% declining balance method-
Rate = 2* 100/5= 40%(2* straight line method rate i.e 100%/ useful life)
2. Straight Line Method
Depreciation=( Cost- salvage value)/useful life
= (90000-0)/5= $18000
3.Half year convention is taken
First three years DBM and then SLM
(90000-36000-21600)*40%=$12960
(90000-36000-21600-12960)*49%=$7776
EOY 200 %Declining Balance Method Straight Line Method MACRS GDS 1 90000*40%=$36000 $18000 $18000 2 (90000-36000)*40%=$21600 $18000 $28800 3(90000-36000-21600)*40%=$12960
$18000 $17280 4(90000-36000-21600-12960)*49%=$7776
$18000 $10368 5 (90000-36000-21600-12960-7776)*40% = $4666 $18000 $10368 $5184Related Questions
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