TABLE 2a MACRS Mid-Quarter Convention: For property placed in serviceduring the first quarterTABLE 26 MACRS Mid-Quarter Convention: For property placed in service during thesecond quarterDepreciation Rate for Recovery Period5-Year7-YearYear 125.00%17.85%Year 230.002347Year 318.0016.76Year 411.3711.97Year 511378.87Year 64.268.87Year 78.87Year 83.34TABLE 2e MACRS Mid-Quarter Convention: For property placed in service during the thirdquarterDepreciation Rate for Recovery Period5-Year7-YearYear 115.00%10.71%Year 234.0025.51Year 320.4018.22Year 412.2413.02Year 511.309.30Year 67.068.85Year 78.86Year 8553TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during thefourth quarterDepreciation Rate for Recovery Period5-Year7-YearYear 15.00%3.57%Year 238.0027.55Year 322.8019.68Year 413.6814.06Year 510.9410.04Year 69.588.73 Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased duringthe year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn't want to take bonus depreciation for2021 or 2022) in the following alternative scenarios (assuming half-year convention for allI): (Use MACRS Table 1, Table 2,and Exhibit 10-10.)f. The vehicle cost $92,000, and it is an SUV that weighs 6,500 pounds. Business use was 100 percent.DepreciationdeductionYear20212022

MACRS is Modified Accelarated Cost Recovery System. The total depreciation is same as…

Answered: - first quarte MACRS M rter

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 7BCRQ

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Asset turnover The Home Depot reported the following data (in millions) in its recent financial statements: Year 2 Year 1 Sales 83,176 78,812 Total assets at the end of the year 39,946 40,518 Total assets at the beginning of the year 40,518 41,084 a. Determine the asset turnover for The Home Depot for Year 2 and Year 1. Round to two decimal places. b. What conclusions can be drawn concerning the trend in the ability of The Home Depot to effectively use its assets to generate sales?
Exercise 1-40 Depreciation OBJECTIVE 0Â° Swanson Products was organized as a new business on January 1, 2019. On that date. Swanson acquired equipment at a cost of $425,000. which is depreciated at a rate of $40,000 per year. Required: Describe how the equipment and its related depreciation will be reported on the balance sheet at December 31, 2019, and on the 2019 income statement.
Accounting Two fixed assets are purchased during 2021: a copier for $10,987.65 on September 30, 2021 and an office desk for 5,432.10 on December 31, 2021. Depreciation entries are recorded at the end of each month. What will be general journal adjusting entry on December 31, 2021 for the depreciation of these fixed assets, if tax basis 150% MACRS is used?
Table 1 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 8.93 6.55 5.90 4.888 Year 8 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 5.90 4.461 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231 Table 3 Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1…
A. Make the December 31 adjusting journal entry for depreciation.B. Determine the net book value (NBV) of the asset on December 31.• Cost of asset, $195,000• Accumulated depreciation, beginning of year, $26,000• Current year depreciation, $13,000
Exercise 10. Adjustment for depreciation The estimated amount of depreciation on equipment for the current year is P3,000. Journalize the adjusting entry to record the depreciation.
Problem 7-4 At January 1, 2017, Wildhorse Co. reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings $61,350,000 Accumulated depreciation—equipment 54,700,000 Buildings 97,200,000 Equipment 150,300,000 Land 20,150,000 The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. During 2017, the following selected transactions occurred: Apr. 1 Purchased land for $4.30 million. Paid $1.075 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1. May 1 Sold equipment for $210,000 cash. The equipment cost $3.30 million when originally purchased on January 1, 2009. June 1 Sold land for $5.04 million. Received $750,000 cash and accepted a 3-year,…
Question 5At January 1, 2017, Crane Company reported the following property, plant, and equipment accounts: Accumulated depreciation—buildings$63,600,000Accumulated depreciation—equipment53,350,000Buildings97,400,000Equipment150,600,000Land23,900,000 The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. During 2017, the following selected transactions occurred: Apr. 1Purchased land for $4.70 million. Paid $1.175 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1.May 1Sold equipment for $220,000 cash. The equipment cost $4.08 million when originally purchased on January 1, 2009.June 1Sold land for $4.98 million. Received $870,000 cash and accepted a 3-year, 5% note for the…
Exercise 9-08 On July 1, 2019, Ivanhoe Company purchased new equipment for $90,000. Its estimated useful life was 5 years with a $12,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entry to record depreciation on…
A) using the depreciation method units of productipn determine the allowable depreciation for each of the 7 years B) using the MACRS depreciation determine the allowable annual depreciation for each year, assuming the half year convention, ie depreciation over 8 years
Exercise 10 – Accrued Expenses Entity D acquired a piece of land on April 1, 2020. The purchase price was reduced by a creditfor the real property taxes accrued during the year. Entity D records real property taxes at eachmonth-end by adjusting the prepaid tax or tax payable account as appropriate. On May 1, 2020,Entity D paid the first of two equal installments of P72,000 for real property taxes. Required:What is the entry to record the payment on May 1?
Asset End of year Amount Appropriate Required Return C 1 - 16% 2 - 3 - 4 - 5 $35,000

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