Engineering Economy: A piece of construction equipment (asset class 15.0) was purchased by Jones ...
Engineering Economy:
A piece of construction equipment (asset class 15.0) was purchased by Jones Construction Company. The cost basis is $580,000.
a.) Determine the GDS depreciation deduction for this property.
b.) Determine the ADS depreciation deduction for this property.
c.) If Jones Construction Company can choose between GDS and ADS which one should they use and why?
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Engineering Economy: A piece of construction equipment (asset class 15.0) was purchased by Jones ...
PLEASE ANSWER WILL RATE A piece of construction equipment (asset class 15.0) was purchased by the...
PLEASE ANSWER WILL RATE
A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company. The cost basis was $320,000. a. Determine the GDS and ADS depreciation deductions for this property. b. Compute the difference in PW of the two sets of depreciation deductions in Part (a) if i = 10% per year. 5 Click the icon to view the partial listing of depreciable assets used in business. 3 Click the icon to view the GDS...
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PLEASE ANSWER WILL RATE
A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company. The cost basis was $320,000. a. Determine the GDS and ADS depreciation deductions for this property. b. Compute the difference in PW of the two sets of depreciation deductions in Part (a) if i = 10% per year. 5 Click the icon to view the partial listing of depreciable assets used in business. 3 Click the icon to view the GDS...
Your company just bought a new piece of automotive manufacturing equipment (asset class 13.3), which will be depreciated under MACRS (GDS) with a recovery period of 10 years. Given a cost basis of $671,000, please answer the following questions: a) How much does the asset depreciate in Year 2? b) What is the cumulative depreciation up to and including Year 5? c) What is the book value at the end of Year 7? d) If the asset is sold in...
A high-precision programmable router for shaping furniture components (manufacturing equipment) is purchased by Henredon for $240,000. It is expected to last 12 years. Calculate the depreciation deduction and book value for each year using MACRS-GDS allowances. a. What is the MACRS-GDS property class? (format example: 3 year) Calculate the depreciation deduction using MACRS-GDS allowances for year 5 = $. Please provide your response to the nearest integer with no comma or $ sign. Calculate the book value using MACRS-GDS allowances...
Question 3 (40 points) A high-precision programmable router for shaping furniture components (manufacturing equipment) is purchased by Henredon for $240,000. It is expected to last 12 years. Calculate the depreciation deduction and book value for each year using MACRS-GDS allowances. a. What is the MACRS-GDS property class? (format example: 3 year) Calculate the depreciation deduction using MACRS-GDS allowances for year 5 = $. Please provide your response to the nearest integer with no comma or $ sign. Calculate the book...
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...
Concord Company purchased a piece of equipment at the beginning of 2017. The equipment cost $455,040. It has an estimated service life of 8 years and an expected salvage value of $75,960. The sum-of-the-years'-digits method of depreciation is being used. Someone has already correctly prepared a depreciation schedule for this asset. This schedule shows that $63,180 will be depreciated for a particular calendar year. Determine for what particular year the depreciation amount for this asset will be $63,180. Year of...
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