CONSTRUCTION ENGINEERING AND MANAGEMENT 9. Prepare a depreciation schedule to be used for tax purposes for a $110,000 railroad spur (track) using the 200% declining-balance method and a half-year convention. Ignore any special depreciation allowances and assume a railroad spur (track) has a 7-year life per the IRS recovery rules. What is the book value in year 3?

CONSTRUCTION ENGINEERING AND MANAGEMENT 9. Prepare a depreciation schedule to be used for tax purposes for a $110,000 railroad spur (track) using the 200% declining-balance method and a half-year convention. Ignore any special depreciation allowances and assume a railroad spur (track) has a 7-year life per the IRS recovery rules. What is the book value in year 3?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

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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32. Prepare a depreciation schedule to be used for tax purposes for a $110,000 railroad spur using the 200% declining balance method and a half-year convention. Ignore any special depreciation allowances.
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A piece of newly purchased industrial equipment costs $980,000 and is classified as seven-year property under MACRS (MACRS Schedule). Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Leave no cells blank. Enter "0" when necessary. Year Beginning Book Value Depreciation Allowance Ending Book Value 1 2 3 4 5 6 7 8
Wildhorse Corporation purchased an asset at a cost of $60,000 on March 1, 2020. The asset has a useful life of 8 years and a salvage value of $4,800. For tax purposes, the MACRS class life is 5 years. MACRS Depreciation Rates by Class of Property RecoveryYear 3-year (200% DB) 5-year(200% DB) 7-year(200% DB) 10-year(200% DB) 15-year(150% DB) 20-year(150% DB) 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.29 18.00 9.50 7.219 3 14.81* 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52* 12.49 11.52 7.70 6.177 5 11.52 8.93* 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55* 5.90* 4.888 8…