Homework Answers
| Please give positive ratings so I can keep answering. Thanks! |
| There are two rates in MACRS. If a plane is used for business purpose then it should be written off in 5 years with rates prescribed under MACRS. | |
| If a plane is used for third party charter purpose then it should be written off in 7 years with rates prescribed under MACRS. | |
| Here the corporation has purchased the plane for use by its engineers. So it is for business use. | |
| 5 year rates are: | |
| 1st Year | 20% |
| 2nd Year | 32% |
| 3rd Year | 19.20% |
| 4th Year | 11.52% |
| 5th Year | 11.52% |
| 6th Year | 5.76% |
| Value of plane | 2,200,000.00 |
| MACRS rate for 2nd year | 32% |
| Depreciation for 2nd year | 704,000.00 |
| Answer is option D. | |
Add Answer to:
A large profitable corporation purchased a small jet plane for use by the firm's engineers. The...
Assume that at the beginning of 2017, Jet Blue purchased a Bombardier Q400 aircraft at a...
Assume that at the beginning of 2017, Jet Blue purchased a Bombardier Q400 aircraft at a cost of $22,000,000. Jet Blue expects the plane to remain useful for five years (5,325,000 km) and to have a residual value of $5,750,000. Jet Blue expects the plane to be flown 875,000 km the first year, 1,400,000 km each year during years 2 through 4, and 250,000 km the last year. 1. Compute Jet Blue's first-year depreciation on the plane using the following...
11-51 Sarah Jarala recently purchased an asset that she intends to use for business purposes in her small Iceland T...
11-51 Sarah Jarala recently purchased an asset that she intends to use for business purposes in her small Iceland Tourism business. The asset has MACRS class life of 5 years. Sarah purchased the asset for $85,000 and uses a salvage value for tax purposes of $15,000 (when applicable). Also, the ADR life of the asset is 8 years. (a) Using MACRS depreciation, what is the book value after 2 years? (b) Using MACRS depreciation, what is the book value after...
A Kenworth road tractor purchased by Rio Corporation cost $88,500. This item will be used for...
A Kenworth road tractor purchased by Rio Corporation cost $88,500. This item will be used for business 100% of the time. Accountants elected to take no section 179 deduction and utilize the special depreciation allowance of 30%. Prepare a depreciation schedule using the MACRS method and enter the accumulated depreciation at the end of year 3 as your answer. Round all dollar amounts to the nearest cent (NEED ANSWER BY 11:30PM PLEASE)
(The following information applies to the questions displayed below.] Lina purchased a new car for use...
(The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including $179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn't want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS...
Lina purchased a new car for use in her business during 2019. The auto was the...
Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (Including $179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn't want to take bonus depreciation for 2019 or 2020) In the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) a. The...
Lina purchased a new car for use in her business during 2019. The auto was the...
Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn’t want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) The vehicle...
i need e f g 11-51 Sarah Jarala recently purchased an asset that she intends to...
i need e f g
11-51 Sarah Jarala recently purchased an asset that she intends to use for business purposes in her small Iceland Tourism business. The asset has MACRS class life of 5 years. Sarah purchased the asset for $85,000 and uses a salvage value for tax purposes of $15,000 (when applicable). Also, the ADR life of the asset is 8 years. (a) Using MACRS depreciation, what is the book value after 2 years? (b) Using MACRS depreciation, what...
Lina purchased a new car for use in her business during 2019. The auto was the...
Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn’t want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) f. The...
Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has...
Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $175,000. With additional options costing $14,000, the cost basis for depreciation purposes is $189,000. Its MV at the end of six years is estimated as $41,000. Assume it will be depreciated under the GDS: a. What is the cumulative depreciation through the end of year three? b. What is the MACRS depreciation in the second year? c. What is the...
The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $201,300 per...
The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $201,300 per year for the next 10 years and an additional $2.013,000 at the end of the 10th year. The seller of the jet is charging 7% annual interest. (FV of St. PV of SLEVA of St and PVA of 51) (Use the appropriate factor(s) from the tables provided.) Determine the liability that would be recorded by Jenkins. (Round your answer to the nearest whole dollar)...
Assume that at the beginning of 2017, Jet Blue purchased a Bombardier Q400 aircraft at a cost of $22,000,000. Jet Blue expects the plane to remain useful for five years (5,325,000 km) and to have a residual value of $5,750,000. Jet Blue expects the plane to be flown 875,000 km the first year, 1,400,000 km each year during years 2 through 4, and 250,000 km the last year. 1. Compute Jet Blue's first-year depreciation on the plane using the following...
11-51 Sarah Jarala recently purchased an asset that she intends to use for business purposes in her small Iceland Tourism business. The asset has MACRS class life of 5 years. Sarah purchased the asset for $85,000 and uses a salvage value for tax purposes of $15,000 (when applicable). Also, the ADR life of the asset is 8 years. (a) Using MACRS depreciation, what is the book value after 2 years? (b) Using MACRS depreciation, what is the book value after...
(The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including $179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn't want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS...
Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (Including $179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn't want to take bonus depreciation for 2019 or 2020) In the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) a. The...
i need e f g
11-51 Sarah Jarala recently purchased an asset that she intends to use for business purposes in her small Iceland Tourism business. The asset has MACRS class life of 5 years. Sarah purchased the asset for $85,000 and uses a salvage value for tax purposes of $15,000 (when applicable). Also, the ADR life of the asset is 8 years. (a) Using MACRS depreciation, what is the book value after 2 years? (b) Using MACRS depreciation, what...
Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $175,000. With additional options costing $14,000, the cost basis for depreciation purposes is $189,000. Its MV at the end of six years is estimated as $41,000. Assume it will be depreciated under the GDS: a. What is the cumulative depreciation through the end of year three? b. What is the MACRS depreciation in the second year? c. What is the...
The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $201,300 per year for the next 10 years and an additional $2.013,000 at the end of the 10th year. The seller of the jet is charging 7% annual interest. (FV of St. PV of SLEVA of St and PVA of 51) (Use the appropriate factor(s) from the tables provided.) Determine the liability that would be recorded by Jenkins. (Round your answer to the nearest whole dollar)...
Most questions answered within 3 hours.
-
What are some issues related to crimes, victims &
victimization that should be addressed?
asked 1 minute ago -
Water flowing uniformly in a rectangular open channel has
manning value of 0.017, bottom slope of...
asked 44 minutes ago -
Nature Conservancy's leader abruptly steps
down.
One morning in October 2007, Steven. J. McCormick the president...
asked 50 minutes ago -
I asked a question similar to this one, which was answered
perfectly. Another practice problem is...
asked 58 minutes ago -
Rachel is studying cholesterol synthesis in mice. Some mice
had a mutation in their sterol regulatory...
asked 55 minutes ago -
Railco sells to its customers on account with terms of 2% / 5
/net 15. Ronco...
asked 1 hour ago -
Refer to the following lease amortization schedule. The 10
payments are made annually starting with the...
asked 1 hour ago -
Explain how God fits into Aquinas' theory of happiness.
asked 1 hour ago -
1.1 With aid of diagrams and suitable examples discuss
the economic effects of price controls.
1.2...
asked 1 hour ago -
When the nuclide polonium-214 undergoes alpha
decay:
The name of the product nuclide is .
The...
asked 1 hour ago -
Q. The market demand function is D(Pd) = 160 - 2Pd and the
market supply function...
asked 1 hour ago -
An unknown alcohol is analyzed by freezing point depression. The
unknown is either methanol (CH3OH), ethanol...
asked 1 hour ago