Engineering Economic Analysis

. .-- '..,----- Modified Accelerated Cost Recovery System (MACRS) 353 Notice,that the DDB calculations get smaller every year, s ...

Notice in this example several aspects of the MACRS depreciation method: (1) the sum of the rt values is 100.00%, (2) this 7-yea ...

,"I Modified Accelerated Cost Recovery System (MACRS) 355 Comparing MACRS and Historical Methods In Examples 11-2 through 11-4 w ...

1 356 DEPRECIATION $150,000 '..'. .......... '."'" .., , ". .,." ,... $125,000 «) $100,000:::I ~ ~o $75,000 o I:Q $50,000 $25,00 ...

Depreciation and Asset Disposal 357 analyses capital gains are very uncommon because business and production equip- ment and fac ...

~ ..--..---- 358 DEPRECIATION (a) Recaptured depreciation = $7000, since the book value is $7000 higher. (b) Since market va ...

Unit-oF-Production Depreciation 359 Straight-linerate=(B- S)/ N=(10,000 - 5000)/5=$1000 Market value4=$4000 Book value4=10,000 ...

.-. hh_ ___. 360 DEPRECIATION SO~UTION The cost basis,B,is $900. The salvage value, S, is $70. The total lifetime production for ...

Depletion 361 Thus,cost depletionis computed like unit-of-production depreciation using: Property cost, less cost for land. Est ...

-----------.------ 362 DEPRECIATION A coal mine has a gross income of $250,000 for the year. Mining expenses equal $210,000. ...

r Spreadsheets and Depreciation 363 replaced by MACRS in 1986,they are not covered in detail here. All three functions include p ...

364 DEPRECIATION FIGURE 11-7 Using VDB to calculate MACRS depreciation. Summary Depreciation is the foundation for including ...

.. -- - .- - -- .- -- -. -- - --. -.. A _.___________ Problems 365 The MACRS system is the current tax law, and it assumes a sal ...

366 DEPRECIATION 11-7 The Acme Chemical Company purchased $45,000 of research equipment, which it believes will have zero salvag ...

. ... .. -. Problems 367 there will be no salvage value to TELCO. The ware- house is to be depreciated either by MACRS or SOYD d ...

368 DEPRECIATION lI Initial cost End-of-useful-life salvage value, S Annual operating cost U sefullife, in years MachineI Ma ...

Problems 369 corporation? Use a spreadsheet to show your compu- tations of the Qifference in present worths. 11-32 The FOURX Cor ...

. -.-....- After Completing This Chapter... The student should be able to: .Calculatetaxes dueortaxes owedfor both individuals a ...

Income Taxes' On with the Wind For at least three decades now, environmental activists and community leaders have be- moaned Ame ...

~. ~... ~..- -..~-- ... .....-. -, 372 INCOME TAXES Fortunately for the industry, the credit was subsequently extended to th ...