5. A delivery truck (5-year property class) was purchased for $72,000 and sold for $30,000 (SV) in t=4. Calculate annual depreciation expense (for tax purposes), beginning-of-year and end-of-year book value (BV), and ordinary gain or loss for the six-year depreciation period. t=1 t=2 t=3 t=4 t=5 t36 .1152 .1152 .0576 MACRS rate .2000 .3200 .1920 ΒΟΥ BV Depreciation 72,000 ΕΟΥBV SV Gain(+)/Loss(-)
5. A delivery truck (5-year property class) was purchased for $72,000 and sold for $30,000 (SV) in t=4. Calculate annual depreciation expense (for tax purposes), beginning-of-year and end-of-year book value (BV), and ordinary gain or loss for the six-year depreciation period. t=1 t=2 t=3 t=4 t=5 t36 .1152 .1152 .0576 MACRS rate .2000 .3200 .1920 ΒΟΥ BV Depreciation 72,000 ΕΟΥBV SV Gain(+)/Loss(-)
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
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