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- .The Counting House, Inc., purchased 5-year property class equipment for $60,000. It uses theDiminishing Balance method(20%) of depreciation. What is depreciation for the second year of the asset'slife?Using the MACRS table in your sildes covering chapters 9-11 and for an asset purchased at a cost of $200.000 and considered class 7, what is the MACRS depreciation for years two through five? a) Second year: b) Third year: d) Fourth year: d) Fifth year:A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company. The cost basis was $300,000. Solve, 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 = 12% per year.
- 1. ABC Corporation purchased a new computer system for $56,000 in 2000. The computer is classified as a seven- year property. What is the depreciation allowance for each year if: a. Straight-line depreciation method is used?Refer to Exhibit 12.4 in the text. What is the depreciation expense deduction in each of 4 years for a$10,000 asset classified under MACRS as 3-year property?I am using MACRS for depreciation. Purchase date: September 1st Cost: $650,000 Salvage: $30,000 Life: 7 years What percent do I use to calculate depreciation for years 1-8?
- Jenny constructed a building for use as a residential rental property. The cost of the building was $164,976, and it was placed in service on August 1, 1999. The building has a 27.5-year MACRS life. What is the amount of depreciation on the building for 2021 for tax purposes? Oa. $2,250 Оb. $3,000 Oc. $6,547 Od. $6,000 Oe. None of these choices are correct.4. Lyceum of Aparri purchased an asset for P 12,555.00 and plans to keep it for 19 years. If the salvage value is zero at the end of the 20th year, what is the depreciation in the FIFTH year? Use sum of the years digit depreciation.A table was purchased for RO 1200 and the depreciation is computed at the rate of 15%. What is the book value at the end of second year by using Written down value method? a. RO 1020 b. RO 867 c. RO 180 d. RO 153
- Consider the following data on an asset:Cost of the asset, I $38,000Useful life. N 6 YearsSalvage value. S $0 Compute the annual depreciation allowances and the resulting book values by using the DOB method and then switching to the SL method.The depreciated value of the washing machine can be modeled by the equation V= _______ + __________t. $ 1045 Washing machine is depreciated for tax purposes $ 95 per year. V = depricated value and t number of years since purchse dateWeatherford purchased a machine with 5 year MACRS for 200,000. They spent an additional 25,000 Weatherford purchased a machine with 5 year MACRS for 200,000. They spent an additional 25,000 installing it. What is the accumulated depreciation on this machine at the end of three years?