ZuoTi.Pro
Question

Question 7 You are going to have to make a depreciation schedule to be used for...

Question 7 You are going to have to make a depreciation schedule to be used for tax purposes for the following description: A company purchased a computer equipment costing $12,000 in April 2016 and placed it in service. The total amount of MACRS properties the company placed in service during the last three months of 2016 were 20% of the total amount of all MACRS properties the company placed in service during 2016. The company's tax year starts on January 1st and ends on December 31st. What is the second year (2017) book value? (Answer with an integer; Round to the nearest integer)

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer:

Cost of computer equipment purchased by a company = $12,000

Under MACRS Computer equipment fall under 10 year property
Book Value = 8,856

Working:

Under MACRS Computer equipment fall under 10 years property
Book value 2017 = 8856
Year Adjusted Basis Rate % Depreciation = (AB*Rate) Cumulative (c1) c1 = DE*rate Book Value (AD-cum) Method
2016 12,000 10% 1200 1200 10,800 DB
2017 10,800 18% 1944 3144 8856 DB
0 0
Add a comment
Know the answer?
Add Answer to:
Question 7 You are going to have to make a depreciation schedule to be used for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • You are going to have to make a depreciation schedule to be used for tax purposes for the followi...

    You are going to have to make a depreciation schedule to be used for tax purposes for the following description: A company purchased a barge costing $671,000 in May 2016 and placed it in service. The total amount of MACRS properties the company placed in service during the last three months of 2016 were 50% of the total amount of all MACRS properties the company placed in service during 2016. What is the second year (2017) book value? (Answer with...

  • 7. Prepare a depreciation schedule to be used for tax purposes for a $1,170,000 office building....

    7. Prepare a depreciation schedule to be used for tax purposes for a $1,170,000 office building. The office building is placed in service in the fifth month of the company's tax year. The cost of the land is not included in the $1,170,000. Tgnore any special depreciation allowances. (10 points)

  • 3 Depreciation of property other than real property begins in the middle of the in which...

    3 Depreciation of property other than real property begins in the middle of the in which it is placed in service when more than 3. 25% of the total cost of all depreciable property placed in service occurs during the fourth quarter. 40% of the total cost ofproperty less any Section 170 deduction during the year occurs during the fourth quarter. 40% of the total cost of all depreciable property placed in occurs during the fourth quarter 25% of the...

  • A. For the properties listed below compute the depreciation taken during the useful life of the...

    A. For the properties listed below compute the depreciation taken during the useful life of the property for all depreciable years assuming the half year convention applies. Assume that all property is post-1986 property. B. Include columns for the applicable AMT depreciation along with the AMT adjustment. Suggested Columns Asset Description Date Placed in Service Cost Basis Recovery Rate MACRS Recovery Amount MACRS Accumulated Depreciation Adjusted Basis AMT Rate PROPERTY Recovery Period, 3 3 Tractor unit Race horse over 2...

  • Assume that TDW Corporation (calendar-year-end) has 2019 taxable income of $654,000 for purposes of computing the...

    Assume that TDW Corporation (calendar-year-end) has 2019 taxable income of $654,000 for purposes of computing the §179 expense. The company acquired the following assets during 2019: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Placed in Asset Service Basis Machinery September 12 $ 2,270,500 Computer equipment February 10 263,650 Furniture April 2 880,850 Total $ 3,415,000 a. What is the maximum amount of §179 expense TDW may deduct for 2019?

  • Casper used the following assets in his Schedule C trade or business in the tax year...

    Casper used the following assets in his Schedule C trade or business in the tax year 2018. Casper is a new client and unfortunately does not have a copy of his prior year's tax return. He recalls that all of the assets purchased in prior years used MACRS depreciation (no §179 expense or bonus). Casper does not wish to take §179 or bonus depreciation. (Use Table 6A-1 and Table 6A-8) Calculate the current year depreciation allowance for Casper’s business. (Round...

  • Assume that TDW Corporation (calendar-year-end) has 2019 taxable income of $650,000 for purposes of computing the...

    Assume that TDW Corporation (calendar-year-end) has 2019 taxable income of $650,000 for purposes of computing the §179 expense. The company acquired the following assets during 2019: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Placed in Asset Service Basis Machinery September 12 $ 2,270,000 Computer equipment February 10 263,000 Furniture April 2 880,000 Total $ 3,413,000 a. What is the maximum amount of §179 expense TDW may deduct for 2019? b. TDW may deduct in...

  • Assume that TDW Corporation (calendar-year-end) has 2019 taxable income of $694,000 for purposes of computing the...

    Assume that TDW Corporation (calendar-year-end) has 2019 taxable income of $694,000 for purposes of computing the §179 expense. The company acquired the following assets during 2019: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) a. What is the maximum amount of §179 expense TDW may deduct for 2019? b. What is the maximum total depreciation, including §179 expense, that TDW may deduct in 2019 on the assets it placed in service in 2019, assuming no...

  • Assume that BLANK Corporation (calendar-year-end) has 2019 taxable income of $668,000 for purposes of computing the...

    Assume that BLANK Corporation (calendar-year-end) has 2019 taxable income of $668,000 for purposes of computing the §179 expense. The company acquired the following assets during 2019: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Placed in Asset Service Basis Machinery September 12 $ 2,272,250 Computer equipment February 10 265,925 Furniture April 2 883,825 Total $ 3,422,000 a. What is the maximum amount of §179 expense BLANK may deduct for 2019? b. What is the maximum...

  • Required information Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore $179...

    Required information Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore $179 expense and bonus depreciation for this problem): (Use MACRS Table 1. Table 2 and Table 5.) Asset Machinery Computer equipment Used delivery truck Furniture Total Date Placed in Service October 25 February 3 March 17 April 22 Original Basis $ 72,000 $ 12,000 $ 25,000 $152,000 $ 261,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT