Cost Management

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October 30, 2020
Construction project.
October 30, 2020

.     How can a cash flow curve be used negatively by a client or bank towards a contractor?

Why is direct construction work performed with a contractor’s own work force considered riskier and therefore they expect a higher fee?

 

On January 1 of 2017 your company purchased the following equipment. How much will you depreciate for the fiscal year ending in 2020 when you have your CPA file your tax return on April 15, 2021 assuming a straight-line depreciation method? How much will you have depreciated total as of this point in time? What are the remaining book values for each piece of equipment?    (a)Dump truck, $100,000, expected resale value of $20,000  (b)Backhoe, $280,000, resale $40,000   (c) Five computers, $1,000 each, no resale value   (d) Flatbed trailer, $75,000, resale $10,000    (e) Five pickup trucks, $30,000 each, $2,500 resale value each    (f) Two construction jobsite trailers, $20,000 each, $5,000 resale value each

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