Homework Answers
Under accelerated cost recovery system the assest is fully depreciated their will be no salvage value under this method but this method applies half year convention depreciation If assest is disposed earlier then depreciation is half of normal depreciation
Option 'A' half of normal depreciation
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7. In the "Accelerated Cost Recovery System" or ACRS depreciation method, the depreciation in...
Which of the statements below is FALSE? A) Under the modified accelerated cost recovery system (MACRS)...
Which of the statements below is FALSE? A) Under the modified accelerated cost recovery system (MACRS) system of depreciation, the government classifies all assets into groups that are assigned specific "lives" for the purpose of depreciation. B) Under the modified accelerated cost recovery system (MACRS) system of depreciation, once the assigned class life is established, an adjustable percentage of the cost is expensed each year as depreciation. C) Under the modified accelerated cost recovery system (MACRS) system of depreciation, it...
t/f Modified Accelerated Cost Recovery System
Modified Accelerated Cost Recovery System is the only depreciation method used in computing corporate income tax liabilities.FalseTrue
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...
Which of the statements below is FALSE? Under the modified accelerated cost recovery system (MACRS) system...
Which of the statements below is FALSE? Under the modified accelerated cost recovery system (MACRS) system of depreciation, once the assigned class life is established, an adjustable percentage of the cost is expensed each year as depreciation. Under the modified accelerated cost recovery system (MACRS) system of depreciation, the government classifies all assets into groups that are assigned specific "lives" for the purpose of depreciation. Depreciation or "expired" costs each year do not reflect cash flows because the actual purchase...
MACRS, or the Modified Accelerated Cost Recovery System is the current tax depreciation system in the...
MACRS, or the Modified Accelerated Cost Recovery System is the current tax depreciation system in the US. It assigns a schedule for yearly depreciation, depending on the type of property. Assume you are considering the purchase of a new $1756 laptop. Computers are to be depreciated as follows: 20% in year 1, 32% in year 2, 19.2% in year 3, 11.52% in years 4 and 5, and the final 5.76% in year 6. How much will your computer have been...
Problem 8-8 Modified Accelerated Cost Recovery System (MACRS), Election to Expense, Listed Property, Limitation on Depreciation...
Problem 8-8 Modified Accelerated Cost Recovery System (MACRS), Election to Expense, Listed Property, Limitation on Depreciation of Luxury Automobiles (LO 8.2, 8.3, 8.4, 8.5) During 2018, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30) $51,500 Baking equipment (June 30) 6,500 Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile (which has a...
Which of the following is correct about the comparison of straight-line and accelerated depreciation method? a....
Which of the following is correct about the comparison of straight-line and accelerated depreciation method? a. Straight-line depreciation method accelerates expense recognition in early years of an asset's life. b. Aggressive managers tend to use straight-line depreciation method in early years of an asset's life. c. Accelerated depreciation method accelerates revenue recognition in early years of an asset's life. d. Accelerated depreciation method increases current earnings in early years of an asset's life. e. Both C and D.
Problem 8-9 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS), Listed Property (LO 8.2, 8.4) On February...
Problem 8-9 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS), Listed Property (LO 8.2, 8.4) On February 2, 2018, Alexandra purchases a personal computer for her home. The computer cost $6,280. Alexandra uses the computer 80 percent of the time in her accounting business, and the remaining 20 percent of the time for various personal uses. Calculate Alexandra's maximum depreciation deduction for 2018 for the computer, assuming half-year convention and she does not make the election to expense or take bonus...
True or False: All else equal, the use of the modified accelerated cost recovery system (MACRS)...
True or False: All else equal, the use of the modified accelerated cost recovery system (MACRS) versus straight-line depreciation increases the net present value of a capital budget analysis.
Project Management 1. The company treasurer must determine the best depreciation method for office furniture that...
Project Management
1. The company treasurer must determine the best depreciation method for office furniture that costs $50,000 and has a zero salvage value at the end of a 10 year depreciable life. Compute the depreciation schedule using: (a) Straight line (b) Double declining balance (C) Sum-of-years' -digits (d) Modified Accelerated Cost Recovery System (MACRS)
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...
Project Management
1. The company treasurer must determine the best depreciation method for office furniture that costs $50,000 and has a zero salvage value at the end of a 10 year depreciable life. Compute the depreciation schedule using: (a) Straight line (b) Double declining balance (C) Sum-of-years' -digits (d) Modified Accelerated Cost Recovery System (MACRS)
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