Industries Corp bought a glass making machine on January 1, 2018 for $31,250. The company did not elect Section 179 expensing and elected out of claiming bonus depreciation in 2018, and is depreciating the machine using the MACRS accelerated depreciation tables for 5-year property. What is the 2020 depreciation (Year 3) deduction for the machine? a- $6,250 b- $12,500 c- $6,000 d- $10,000 e- None of the above is correct

Industries Corp bought a glass making machine on January 1, 2018 for $31,250. The company did not elect Section 179 expensing and elected out of claiming bonus depreciation in 2018, and is depreciating the machine using the MACRS accelerated depreciation tables for 5-year property. What is the 2020 depreciation (Year 3) deduction for the machine? a- $6,250 b- $12,500 c- $6,000 d- $10,000 e- None of the above is correct

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 33P

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On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
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