On June 30, 2010, Rockwell Corp. paid $220,000 for equipment that is expected to have an eight-year
Question:
On June 30, 2010, Rockwell Corp. paid $220,000 for equipment that is expected to have an eight-year life. In this industry, the residual value of equipment is approximately 10% of the asset s cost. Rockwell s cash revenues for the year are $115,000 and cash expenses total $75,000.
Select the appropriate MACRS depreciation method for income tax purposes. Then determine the extra amount of cash that Rockwell can invest by using MACRS depreciation, versus straight-line, for the year ended December 31, 2010. The income tax rate is 40%.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
SHORTCUT SOLUTION Depreciation by the two methods Extra depreciation provided by ...View the full answer
Answered By
Rustia Melrod
I am a retired teacher with 6 years of experience teaching various science subjects to high school students and undergraduate students. This background enables me to be able to help tutor students who are struggling with the science of business component of their education. Teaching difficult subjects has definitely taught me patience. There is no greater joy for me than to patiently guide a student to the correct answer. When a student has that "aha!" moment, all my efforts are worth it.
The Common Core standards are a useful yardstick for measuring how well students are doing. My students consistently met or exceeded the Common Core standards for science. I believe in working with each student's individual learning styles to help them understand the material. If students were struggling with a concept, I would figure out a different way to teach or apply that concept. I was voted Teacher of the Year six times in my career. I also won an award for Innovative Teaching Style at the 2011 National Teaching Conference.
4+ Reviews
10+ Question Solved
Related Book For 
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
Question Posted:
