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 depreciated after year 2? Carry out calculations to at least 4 decimal places. Enter percentages as whole numbers. Example: 3.03% should be entered as 3.03. Do not include commas or dollar signs in numerical answers.
Homework Answers
Please find below the answer.
| Year -1 depreciation = | =1756*20% | 351.2000 | |||
| Year -2 depreciation = | =1756*32% | 561.9200 | |||
| Total depreciation for 2 year = | 913.1200 | ||||
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MACRS, or the Modified Accelerated Cost Recovery System is the current tax depreciation system in the...
please answer both Carry out calculations to at least 4 decimal places. Enter percentages as whole...
please answer both
Carry out calculations to at least 4 decimal places. Enter
percentages as whole numbers. Example: 3.03% should be entered as
3.03. Do not include commas or dollar signs in numerical
answers.
D Question 9 3 pts Which of the financial statements measure flows, and are thus most important for a NPV analysis? O Balance sheet and income statement Balance sheet only Income statement only Income and owners equity statements Cash flow statement only O Cash flow and...
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...
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...
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automobiles generally have 3- year cost recovery period under the modified accelerated cost recovery system (MACRS). true or false
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...
True or False: All else equal, the use of the modified accelerated cost recovery system (MACRS)...
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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...
Problem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, LO...
Problem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, LO 8.3) Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2018. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $39,000 and an estimated useful life of 5 years. Assume half-year convention...
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...
please answer both
Carry out calculations to at least 4 decimal places. Enter
percentages as whole numbers. Example: 3.03% should be entered as
3.03. Do not include commas or dollar signs in numerical
answers.
D Question 9 3 pts Which of the financial statements measure flows, and are thus most important for a NPV analysis? O Balance sheet and income statement Balance sheet only Income statement only Income and owners equity statements Cash flow statement only O Cash flow and...
Problem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, LO 8.3) Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2018. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $39,000 and an estimated useful life of 5 years. Assume half-year convention...
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...
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