has reported that the project will require additional manufacturing space‚ and RIC currently has an option to purchase an existing building‚ at a cost of $10 million‚ which would meet this need. The building would be bought and paid for on December 31‚ 2008‚ and for depreciation purposes‚ it would fall into the MACRS 39- year class. The annual depreciation rate for the five years of economic life of the project would be: Year 1 1.3% Year 2 2.6% Year 3 2.6% Year 4 2.6% Year 5 2.6% d. The necessary
Premium Depreciation Variable cost
2005‚ at a cost of $100‚000. The estimated useful life is 4 years with a salvage value of $10‚000. The purchase of long-lived assets are daily‚ quarterly and yearly occurrences for many corporations. The cost allocation of the asset is shown through the method of depreciation a company uses. The method a company chooses to incorporate should be one that most effectively matches expenses with the revenues produced. The method that most select is that of straight-line depreciation‚ which "spreads
Premium Depreciation
CONCEPT OF PRICING‚ AFFORDABILITY‚ COST RECOVERY & REPLICABILITY IN HOUSING TABLE OF CONTENT 1 Introduction 3 Concept of Pricing 5 House Price Index 5 Housing Affordability 7 Housing Market Affordability 8 Cost Recovery & Replication 12 Conclusion 12 References 13 INTRODUCTION Shelter is one of the human basic physiological needs (Maslow ’s Hierarchy of Needs). In this modern
Premium Real estate Public housing Household income in the United States
addressed cash payment of $ 100 million cost of building the new stadium was $ 20 million market value of the land was $ 12 million the book value of the old stadium was $ 1 million useful live of the stadium was 40 years demolition cost at end useful live estimated $ 5 million (I take it as estimated $ 5 mio in 2043). Sale of old stadium (millions) The deal (an investment activity): Ciclón received in the deal - cash payment - land - the new stadium (building cost) Ciclón provided in the deal - the
Premium Depreciation Generally Accepted Accounting Principles Balance sheet
Point of View This case study is discussed from Paperco‚ Inc. point of view of whether they should avail the tax benefits and cost savings in replacing the mechanical drying equipment. Recommendation Based on the analysis below in this memo‚ Paperco should purchase new mechanical drying equipment now in advance in anticipation of the passage of new tax legislation. Purchasing the equipment now maintains a positive Net Present Value for the capital project if the legislation is not enacted
Premium Depreciation
business account cheque book shows a balance of $690‚ and his customers still owe him $500. During the period‚ he collected $4‚250 from customers. His cheque book lists payments for supplies totalling $400‚ and he still has fuel and supplies that cost a total of $50 on hand. He paid his employees $1‚900‚ and he still owes them $200 for their final week of work. Frank rented some equipment from Scholes Machine Shop. On 1 April‚ he signed a sixmonth rental agreement on lawnmowers and paid $600 for
Premium Depreciation Balance sheet Expense
WHITE PAPER A Practical Guide to Disaster Recovery Planning: The basics to getting started. Brace Rennels‚ Business Continuity published: March 2006 Executive Summary When you think about your disaster recovery plan‚ does your tape backup system come to mind? Does the mere mention of disaster recovery make you a bit nervous? If so‚ you’re not alone. Many businesses risk grave losses due to failures and disasters yet continue to depend on their tape backups to help them recover successfully
Premium Business continuity planning Disaster recovery
would require the following expenditures: Mr. Handy believes that all these outlays could be depreciated for tax purposes in the seven-year MACRS class. NETCO ’s chief engineer‚ McPhail‚ estimates the postoverhaul operating costs as follows: These costs generally increase with inflation‚ which is forecasted at 2.5% a year. The Vital Spark is carried on NETCO ’s books at a net depreciated value of only $100‚000‚ but could probably be sold “as is‚” along with an extensive inventory
Premium Depreciation
Service Recovery: Online Shopping Mall in Korea Loyal customers are a vital asset of service companies. The most effective way to ensure repeat customers is to provide a product and service that meets or exceeds that customer’s expectations every time. Although this fact is important‚ effective application of recovery strategies may enable service mangers to maintain or even increase loyalty. Generally‚ good service recovery not only turns angry and frustrated customers into loyal ones‚ but it
Premium Customer service Retailing Electronic commerce
Backup and Recovery Recommendation Working for a small nonprofit organization with a grant of $500 to form a backup and recovery plan for their computers is not an easy task. Volunteers often go above and beyond to achieve greatness for non-profit organizations. In order to make this organization thrive‚ assistance is needed to backup all the information on the organization’s computers. With 11 computers and only 1 laptop all running on XP‚ additional hardware and storage needed so the organization
Premium Computer Computer data storage Hard disk drive