On January 1, 2020, Bonita Industries purchased a machine costing $358000. The machine is in the MACRS 5-year recovery classfor tax purposes and has an estimated $67000 salvage value at the end of its economic life. It's based on half year convention.Assuming the company uses the general MACRS approach, the amount of MACRS deduction for tax purposes for the year 2020 isMACRS Depreciation Rates by Class of Property3-year(200% DB)7-year(200% DB)15-year(150% DB)20-year(150% DB)Recovery5-year(200% DB)10-year(200% DB)Year133.3320.0014.2910.005.003.7502.44.4532.0024.4918.009.507.21914.81*19.2017.4914.408.556.67711.52*11.5212.498.93*4......... 7.4111.527.706.17759.226.935.7136....5.768.927.376.235.2858.936.55*5.90*4.8888.4.466.555.904.5226.565.914.462106.555.904.461113.285.914.462125.904.461135.914.462145.904.461155.914.462162.954.461174.462184.461194.462204.461212.231*switchover to stralght-line depreclation.O $71600.O $114560.O $143200.O $58200.

MACRS (Modified Accelerated Cost Recovery System) is a method of calculating depreciation in which…

On January 1, 2020, Bonita Industries purchased a machine costing $358000. The machine is in the MACRS 5-year recovery class for tax purposes and has an estimated $67000 salvage value at the end of its economic life. It's based on half year convention. Assuming the company uses the general MACRS approach, the amount of MACRS deduction for tax purposes for the year 2020 is MACRS Depreciation Rates by Class of Property Recovery 3-year (200% DB) S-year (200% DB) 7-year 10-year (2006 DB) 15-year (150% DB) 20-year Year (200% DB) (150% DB) 14.29 24.49 17.49 12.49 33.33 20.00 10.00 5.00 3.750 44.45 32.00 18.00 9.50 7.219 14.81 19.20 14.40 8.55 7.70 6.677 11.52 11.52 11.52 9.22 4.. 7.41 6.177 8.93 6.93 5.713 6.23 5.90 5.285 4.888 5.76 8.92 8.93 7.37 6.55 6.... 5.90 5.91 . 4.46 6.55 4.522 6.56 6.55 4.462 4.461 4.462 10 5.90 11 3.28 5.91 .... .. 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 ..... *Switchover to stralght-ine depreciation.

On January 1, 2020, Bonita Industries purchased a machine costing $358000. The machine is in the MACRS 5-year recovery class for tax purposes and has an estimated $67000 salvage value at the end of its economic life. It's based on half year convention. Assuming the company uses the general MACRS approach, the amount of MACRS deduction for tax purposes for the year 2020 is MACRS Depreciation Rates by Class of Property Recovery 3-year (200% DB) S-year (200% DB) 7-year 10-year (2006 DB) 15-year (150% DB) 20-year Year (200% DB) (150% DB) 14.29 24.49 17.49 12.49 33.33 20.00 10.00 5.00 3.750 44.45 32.00 18.00 9.50 7.219 14.81 19.20 14.40 8.55 7.70 6.677 11.52 11.52 11.52 9.22 4.. 7.41 6.177 8.93 6.93 5.713 6.23 5.90 5.285 4.888 5.76 8.92 8.93 7.37 6.55 6.... 5.90 5.91 . 4.46 6.55 4.522 6.56 6.55 4.462 4.461 4.462 10 5.90 11 3.28 5.91 .... .. 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 ..... *Switchover to stralght-ine depreciation.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges

Section: Chapter Questions

Problem 1BD

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