Metlock 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 |
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 |
Metlock Corporation purchased an asset at a cost of $50,000 on March 1, 2020. The asset has a useful life of 8 years and...
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 ...
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 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 ...
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 ...
Nash Enterprises purchased a delivery truck on January 1, 2017, at a cost of $28,080. The truck has a useful life of 7 years with an estimated salvage value of $6,240. The straight-line method is used for book purposes. For tax purposes, the truck, having an MACRS class life of 7 years, is classified as 5-year property; the optional MACRS tax rate tables are used to compute depreciation. In addition, assume that for 2017 and 2018 the company has revenues...
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...
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In plain English, explain how depreciation was calculated for years 1-3, for the 5-year column 3. In plain English, explain how depreciation was calculating for years 4-6 (Hint: See MACRS4 solution, end-of-year basis for year 3; divide by 5, but you must explain why you divided by 5). Depreciation rate for recovery period Year 3-year 10-year 20-year 5-year 7-year 15-year 20.00% 14.29% 10.00% 5.00% 3.750% 33.33% 24.49 18.00 9.50 7.219 44.45 32.00 14.81 19.20 17.49 14.40 8.55 6.677 3 4...
Can you help me, please Capital Budgeting Decision Since LX corporation is producing at full capacity, Amanda has decided to have Han examine the feasibility of a new manufacturing plant. This expansion would represent a major capital outlay for the company. A preliminary analysis of the project has been conducted at a cost of $1.6 million. This analysis determined that the new plant will require an immediate outlay of $54 million and an additional outlay of $31 million in one...