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Step2247 [10]
3 years ago
13

Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonu

s depreciation for this problem): (Use MACRS Table 1, Table 2 and Table 5.)
Asset Date Placed in Service Original Basis
Machinery 10/25 70,000
Computer Equipment 2/3 10,000
Used Delivery Truck 3/17 23,000
Furniture 4/22 150,000
Total 253,000
The delivery truck is not a luxury automobile.
In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $300,000.
What is the allowable MACRS depreciation on Convers’s property in the current year assuming Convers does not elect §179 expense and elects out of bonus depreciation?
Business
1 answer:
marishachu [46]3 years ago
5 0

Answer:

$42,853

Explanation:

The computation of the allowable MACRS depreciation on Convers’s property in the current year is shown below:

<u>Assets      Place in service    Quarter   Original Basis  Rate Depreciation</u>

Machinery

(7 years)     Oct 25                   4th           $70,000         14.29%  $10,003

Computer

Equipment

(5 years)    Feb 03                   1st            $10,000         20%       $2,000

Used delivery

truck

(5 years)     Mar 17                   1st            $23,000        20%       $4,600

Furniture

(7 years)     Apr 22                  2nd         $150,000       14.29%    $21,435

Qualified

improvement

(39 years)    May 12                 2nd         $300,000     1.605%     $4,815

Total                                                        $553,000                       $42,853

Refer to the MACRS depreciation table

and we used the half year convention

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Answer:

The correct answer is letter "D": Straight-line depreciation is higher than double-declining-balance depreciation in the later years.

Explanation:

With the straight-line approach, depreciation is distributed equally during the life cycle of an asset. While using the double-declining-balance approach, a higher amount of depreciation is allocated during the first years while the asset is highly used and the depreciation reduces as long as the life of the asset ends.

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8 0
4 years ago
If ten executives have salaries of $80,000, six have salaries of $75,000, and three have salaries of $70,000, what is the median
Lapatulllka [165]

If ten executives have salaries of $80,000, six have salaries of $75,000, and three have salaries of $70,000, The median salary is $80,000

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Reason:

The median is the middle score when they are arranged in ascending or descending order.

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What is the median ?

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3 0
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Friday Night, Inc. manufactures high-quality 5-liter boxes of wine which it sells for $14 per box. Below is some information rel
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Answer:

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Answer:

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Answer:

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