Problem 8-36 (a) (LO. 2) Need Help on "C" Chandler acquired the following new assets during...
Problem 8-36 (a) (LO. 2) Need Help on "C"
Chandler acquired the following new assets during 2019: Date Asset Cost
February 1 Agricultural machinery and equipment $75,000
September 3 Calculators 18,000
December 1 Trucks (not subject to any depreciation limitation) 95,000
Chandler does not elect immediate expensing under § 179 but takes the additional first-year depreciation for the agricultural machinery and equipment and calculators.
a. What MACRS convention applies to the assets? Mid-quarter
b. What class of property is each asset for MACRS? Agricultural machinery - seven years, calculators - five years, Trucks - five years
c. The cost recovery for the current year is: Agricultural machinery and equipment: $________
Calculators: $ ______
Trucks: $_______
Homework Answers
| (a) | (b) | (a) X (b) | ||
| Property | MACRS Basis | Recovery period | Depreciation Rate | MACRS depreciation |
| Machinery | $ 75,000 | 7 year | 25.00% | $ 18,750.00 |
| Calculators | $ 18,000 | 5 year | 15.00% | $ 2,700.00 |
| Trucks | $ 95,000 | 5 year | 5.00% | $ 4,750.00 |
| Cost recovery | $ 26,200.00 |
Rate of depreciation applicable is taken from mid quarter convention depreciation tables.
Please RATE the answer.
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Problem 8-36 (a) (LO. 2) Need Help on "C"
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