Sheffield Corporation purchased an asset at a cost of $58,750 on March 1, 2020. The asset...
Sheffield Corporation purchased an asset at a cost of $58,750 on
March 1, 2020. The asset has a useful life of 8 years and a salvage
value of $4,700. For tax purposes, the MACRS class life is 5
years.
| MACRS Depreciation Rates by Class of Property | ||||||||||||
|
Recovery |
3-year |
5-year |
7-year |
10-year |
15-year |
20-year |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
1 |
33.33 | 20.00 | 14.29 | 10.00 | 5.00 | 3.750 | ||||||
|
2 |
44.45 | 32.00 | 24.29 | 18.00 | 9.50 | 7.219 | ||||||
|
3 |
14.81* | 19.20 | 17.49 | 14.40 | 8.55 | 6.677 | ||||||
|
4 |
7.41 | 11.52* | 12.49 | 11.52 | 7.70 | 6.177 | ||||||
|
5 |
11.52 | 8.93* | 9.22 | 6.93 | 5.713 | |||||||
|
6 |
5.76 | 8.92 | 7.37 | 6.23 | 5.285 | |||||||
|
7 |
8.93 | 6.55* | 5.90* | 4.888 | ||||||||
|
8 |
4.46 | 6.55 | 5.90 | 4.522 | ||||||||
|
9 |
6.56 | 5.91 | 4.462* | |||||||||
|
10 |
6.55 | 5.90 | 4.461 | |||||||||
|
11 |
3.28 | 5.91 | 4.462 | |||||||||
|
12 |
5.90 | 4.461 | ||||||||||
|
13 |
5.91 | 4.462 | ||||||||||
|
14 |
5.90 | 4.461 | ||||||||||
|
15 |
5.91 | 4.462 | ||||||||||
|
16 |
2.95 | 4.461 | ||||||||||
|
17 |
4.462 | |||||||||||
|
18 |
4.461 | |||||||||||
|
19 |
4.462 | |||||||||||
|
20 |
4.461 | |||||||||||
|
21 |
2.231 | |||||||||||
|
*Switchover to straight-line depreciation. |
||||||||||||
Compute tax depreciation for each year 2020–2025.
(Round answers to 0 decimal places, e.g.
45,892.)
|
Tax depreciation for 2020 |
$enter a dollar amount rounded to 0 decimal places |
|
|---|---|---|
|
Tax depreciation for 2021 |
$enter a dollar amount rounded to 0 decimal places |
|
|
Tax depreciation for 2022 |
$enter a dollar amount rounded to 0 decimal places |
|
|
Tax depreciation for 2023 |
$enter a dollar amount rounded to 0 decimal places |
|
|
Tax depreciation for 2024 |
$enter a dollar amount rounded to 0 decimal places |
|
|
Tax depreciation for 2025 |
$enter a dollar amount rounded to 0 decimal places |
Homework Answers
| Tax depreciation for 2020 | $11,750 | ||||
| Tax depreciation for 2021 | $18,800 | ||||
| Tax depreciation for 2022 | $11,280 | ||||
| Tax depreciation for 2023 | $6,768 | ||||
| Tax depreciation for 2024 | $6,768 | ||||
| Tax depreciation for 2025 | $3,384 | ||||
| Working | |||||
| 2020 | $58,750 | x | 20.00% | = | $11,750 |
| 2021 | $58,750 | x | 32.00% | = | $18,800 |
| 2022 | $58,750 | x | 19.20% | = | $11,280 |
| 2023 | $58,750 | x | 11.52% | = | $6,768 |
| 2024 | $58,750 | x | 11.52% | = | $6,768 |
| 2025 | $58,750 | x | 5.76% | = | $3,384 |
Add Answer to:
Sheffield Corporation purchased an asset at a cost of $58,750 on
March 1, 2020. The asset...
Francis Corporation purchased an asset at a cost of $50,000 on March 1, 2020. The asset...
Francis Corporation purchased an asset at a cost of $50,000 on
March 1, 2020. The asset has a useful life of 8 years and a salvage
value of $4,000. For tax purposes, the MACRS class life is 5
years.
MACRS Depreciation Rates by Class of
Property
Recovery
Year
3-year
(200% DB)
5-year
(200% DB)
7-year
(200% DB)
10-year
(200% DB)
15-year
(150% DB)
20-year
(150% DB)
1
33.33
20.00
14.29
10.00
5.00
3.750
2
44.45
32.00
24.29
18.00
9.50
7.219 ...
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vaughn Corporation purchased an asset at a cost of $56,250 on March 1, 2020. The asset has a useful life of 8 years and a salvage value of $4,500. For tax purposes, the MACRS class life is 5 years. Recovery Year 3-year (200% DB) 5-year (200% DB) 7-year (200% DB) 10-year (200% DB) 15-year (150% DB) 20-year (150% DB) 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.29 18.00 9.50 7.219 3 14.81* 19.20 17.49 14.40 8.55 6.677 ...
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Arlington LLC purchased an automobile for $62,000 on July 5, 2018. What is Arlington's depreciation expense...
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Question 3 (10 points): Using the Modified Accelerated Cost Recovery method (table A-1), calculate the depreciation...
Question 3 (10 points):
Using the Modified Accelerated Cost Recovery method (table A-1),
calculate the depreciation of $2,500,000 property for 7-year half
-year convention. Note: you just need to calculate the
depreciation; you do not need to use it in any further
calculations.
Table A-1. 3-, 5-, 7-, 10-, 15-, and 20-Year Property Half-Year Convention Depreciation rate for recovery period Year 3-year 5-year 7-year 10-year 15-year 20-year 33.33% 44.45 14.81 20.00% 32.00 19.20 11.52 11.52 14.29% 24.49 17.49 12.49 8.93...
Francis Corporation purchased an asset at a cost of $50,000 on
March 1, 2020. The asset has a useful life of 8 years and a salvage
value of $4,000. For tax purposes, the MACRS class life is 5
years.
MACRS Depreciation Rates by Class of
Property
Recovery
Year
3-year
(200% DB)
5-year
(200% DB)
7-year
(200% DB)
10-year
(200% DB)
15-year
(150% DB)
20-year
(150% DB)
1
33.33
20.00
14.29
10.00
5.00
3.750
2
44.45
32.00
24.29
18.00
9.50
7.219 ...
On April 5, 2019, Kinsey places in service a new passenger automobile that cost $60,000. The car is used 100% for business in each tax year. Kinsey uses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Assume Kinsey elects any available additional first-year depreciation. The maximum depreciation allowed for 2019 is $ 12000 X and for 2020 is S 16000 20 5 Hint(s) EXHIBIT 8.4 MACRS Accelerated Depreciation for Personal Property Assuming Half-Year Convention...
Olney LLC only purchased one asset this year. Olney LLC placed in service on July 19, 2019, machinery and equipment (seven-year property) with a basis of $1,330,000. Assume that Olney has sufficient Income to avold any limitations. Calculate the maximum depreciation deduction, Including $179 expensing (but Ignoring bonus depreciation). (Use MACRS Table 1) (Round final answer to the nearest whole number.) Essay Toolbar navigation B I v S :- Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33%...
Arlington LLC purchased an automobile for $80,000 on July 5, 2018. What is Arlington's depreciation expense for 2018 if its business use percentage is 80 percent (ignore any possible bonus depreciation)? (Use MACRS Table 1, and Exhibit 10-10.) Multiple Choice None of the choices are correct. $12,000. $6,125. $8,000. $8,000. TABLE 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period Year 3-Year 5-Year 10-Year 15-Year 20-Year 20.00% 32.00 19.20 11.52 11.52 5.76 7-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93...
Arlington LLC purchased an automobile for $62,000 on July 5, 2018. What is Arlington's depreciation expense for 2018 if ts business use percentage is 61 percent (ignore any possible bonus depreciation)? (Use MACRS Table 1, and Exhibit 10-10) Multiple Choice $6,200 $6,100. $4,775 $9,300 None of the choices are correct. TABLE 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 7-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 Year 3-Year 5-Year 10-Year 1 5-Year 20-Year 33.33% 44.45 14.81 7.41...
Question 3 (10 points):
Using the Modified Accelerated Cost Recovery method (table A-1),
calculate the depreciation of $2,500,000 property for 7-year half
-year convention. Note: you just need to calculate the
depreciation; you do not need to use it in any further
calculations.
Table A-1. 3-, 5-, 7-, 10-, 15-, and 20-Year Property Half-Year Convention Depreciation rate for recovery period Year 3-year 5-year 7-year 10-year 15-year 20-year 33.33% 44.45 14.81 20.00% 32.00 19.20 11.52 11.52 14.29% 24.49 17.49 12.49 8.93...
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