Problem

Computing depreciation for tax purposesVision Eye Care Company purchased $40,000 of equipm...

Computing depreciation for tax purposes

Vision Eye Care Company purchased $40,000 of equipment on March 1, 2011.

Required

a. Compute the amount of depreciation expense that is deductible under MACRS for 2011 and 2012, assuming that the equipment is classified as seven-year property.


b. Compute the amount of depreciation expense that is deductible under MACRS for 2011 and 2012, assuming that the equipment is classified as five-year property.

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