FREE Trial

Zul Cleaning Company bought a new delivery truck for RM45,000. Additional fitting for the truck costs RM2,500. The truck is

This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!

Question:

Zul Cleaning Company bought a new delivery truck for RM45,000. Additional fitting for the truck costs RM2,500. The truck is expected to have a useful life of 5 years, and is classified as a light-duty truck and can be depreciated either by straight line method or MACRS.

MACRS rate: http://www.milefoot.com/math/businessmath/topics/macrs.htm

At the end of life the truck, it will be sold for RM5,000. The company's tax is 24%.

1. The cost of the truck is RM_____________.

2. The salvage value is RM__________.

3. Based on SLM, the annual depreciation expense is RM___________.

4. Based on SLM.

Accumulated depreciation in Year 3 is RM_______.

5. Based on SLM.

The book value/ Net Asset Value (NAV) in Year 4 is RM_______.

6. Based on MACRS.

The depreciation expense in Year 2 is RM__________.

7. Based on MACRS

The accumulated depreciation expense in Year 4 is RM__________.

8. Based on MACRS.

The book value/ NAV in Year 5 is RM__________.

9. Based on MACRS.

The gain/ loss of disposal of asset is RM__________.

10. Based on MACRS.

Assume: The truck is sold in Year 4 instead of Year 5 for the same value.

The after tax cash flow/ tax shield on the disposal of asset is RM__________.

Expert Answer:

Answer rating: 100% (QA)

1 RM47 500 Cost of the truck RM45 000 Additional fitting RM2 500 RM45 000 RM2 500 RM47 500 2 RM5 000 View the full answer


answer-question
Related Book For  answer-question
Accounting

Accounting

ISBN: 978-0324188004

21st Edition

Authors: Carl s. warren, James m. reeve, Philip e. fess

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Posted Date: February 01, 2023 05:48:51
See More Questions

Students also viewed these finance questions

Q:
The equipment was expected to have a useful life of three years, or 25,000 operating hours, and a residual value of $4,500. The equipment was used for 12,000 hours during 2008, 9,000 hours in 2009,...
A:
a Determining the amount of depreciation expenses for t......
Q:
On January 1, Jones Company acquired a new delivery truck for $40,000 cash. Additional cash payments during the year were as follows. Taxes and fees on delivery truck, $3,200 Installation of GPS...
A:
a Truck 46 200 Cash 46 200 Insurance Expen......
Q:
The Delta Chemical Corporation is expected to have the capital structure for the foreseeable future as given in Table P15.10. The flotation costs are already included in each cost component. The...
A:
Given k e 0 30 a i e 70 70 0 30 0 3......
Q:
Using the trial balance prepared for Binbutti Engineering in Part 4 of Problem 2-9A, prepare an income statement and statement of changes in equity for the three months ended July 31, 2014, and a...
A:
Revenues BINBUTTI ENGINEERING Income Statement For Three Months Ended July 31 2014 Engineerin......
Q:
Explain why self-employed taxpayers generally pay double the amount of FICA taxes that regular wage earners do.
A:
The FICA tax is a matching tax in that generally is paid by......
Q:
Camping Supply Company has developed a new camping lamp that runs on solar power. The solar cells charge in the sun all day and then the lamp is ready to run when the sun goes down. The company has a...
A:
1 a Notice in the solution below that the materials price variance is computed on the entire amount of materials purchased whereas the materials quant......
Q:
Federal Corporation realizes the following net capital losses in 2022: NLTCGs were incurred in the three preceding years as follows: a. What are the amount and character of any capital loss carryback...
A:
a 200 000 of capital losses are carried back and used to offset 100 000 20 000 20......
Q:
On June 30, 2017, Mischa Auer Company issued $4,000,000 face value of 13%, 20-year bonds at $4,300,920, a yield of 12%. Auer uses the effective-interest method to amortize bond premium or discount....
A:
a 1 June 30 2017 Cash 4 300 920 00 Bonds Payable 4 000 000 00 Premium on Bonds Payable 300 920 00 2......
Q:
You are required to calculate the two methods available for the car expense/deduction. - Assuming the car has full records, including a valid log book. - The set rate method uses 66 cents per...
A:
SOLUTION To calculate the car expense deduction using the two available methods we will consider the......
Q:
Overview: In this activity, you will track a fictitioushurricane that is anticipated to strike Hampton Beach in Hampton,New Hampshire. You will assess the data provided in the scenario,estimating the...
A:
The current storm track of Tropical Storm Peter is heading west northwestward at approximately 10 mi......
Q:
A group of artists are trying to decide whether they will make a profit if they set up a Web-based business to market and sell stained glass that they make. The costs associated with this business...
A:
The detailed answer for the above question is provided below Observe that the material cos......
Q:
P5.5 (LO 1, 2, 3), AP The management team of Mohamed Industries was evaluating its performance for the first half of the year. Production and sales of its fans were on budget at 3,000 units to date,...
A:
a Special Order with 200 Units at 50 per Unit No Variable Selling Cost Additional Revenue 200 units......
Q:
The one-year interest rate in dollars is 2.7% and the one-year interest rate in euros is 1.9%. The current spot exchange rate is $1.600/. a) According to uncovered interest parity, what should we...
A:
Uncovered Interest Parity UIP is an economic theory that suggests that the difference in interest ra......
Q:
Evaluate your understanding of the differentiation between culture and race and how each differently impacts your interactions with people from other cultures and races. Research and post a list of...
A:
SOLUTION Understanding the differentiation between culture and race is essential for navigating interactions with people from diverse backgrounds Culture refers to the shared beliefs values customs be......
Q:
Assume you pay $1,343 for a Tesla bond (14 year maturity, 6.5% coupon bond, paid semi-annually, with a YTM of 3.4%, $1,000 principal). If Tesla is downgraded and the default risk premium of Tesla...
A:
To calculate the new bond price of Tesla after the increase in the default risk premium you can foll......
Q:
Write a program called ezstart.py that: a. In a comment on the first line gives your full name (first and last). b. Creates a string variable called myname that's equal to your name. c. Creates an...
A:
Let s start with each program one by one ezstart py Your full name Your Name myname Your Name myage 30 Replace with your actual age sqrage myage 0 5 print My name is and I am years old format myname m......
Q:
25 lb of propane is is held in a sealed container at 350 psi. The volume of the container is 3 cu-ft. Calculate the weights and volumes of the two phases in the container. How do you decide the...
A:
Click to View...
Q:
Frontland Advertising creates, plans, and handles advertising campaigns in a three-state area. Recently, Frontland had to replace an inexperienced office worker in charge of bookkeeping because of...
A:
Req 1 Date Effect on Cash Effect on Total Assets E......
Q:
The accounts in the ledger of Haleakala Park Co. as of March 31, 2006, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been...
A:
Haleakala Park CO Trial Balance March 31 2006 Cash 19 550 Accounts Receivable 37 50......
Q:
The following conversation took place between Empire Paving Co.'s bookkeeper, Kelly Monroe, and the accounting supervisor, Jan Hargrove. Jan: Kelly, I'm thinking about bringing in a new computerized...
A:
Kelly is missing some of the principal benefits of the computerized system There are three primary a......
Q:
Pulmonary Inc.s perpetual inventory records indicate that $382,800 of merchandise should be on hand on March 31, 2006. The physical inventory indicates that $371,250 of merchandise is actually on...
A:
Cost of Merc......
Cybersecurity Cyberwar And Cyberweapon A Beginners Guide To Understanding Cyber Security And How It Affects You 1st Edition - ISBN: B09DN1926V - Free Book