Sunnyside Company has a December 31 year end. In January 2021, the Company acquires seven floor...
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Sunnyside Company has a December 31 year end. In January 2021, the Company acquires seven floor cleaning machines at a cost of $15,000 each. Because of their extremely heavy usage, they must be replaced in December, 2021. They are replaced with seven new floor cleaning machines at a cost of $16,000 each. The Company receiveda trade in allow ance of $2,000 for each of the replaced machines. Required: Indicate the amount(s) that would be deducted from 2021 business income if no election is made to put each floor cleaning machine in a separate class. Contrast this with the deduction(s) that vould be available if the separate class election is used. Floor cleaninq machines vould be Sunnyside Company has a December 31 year end. In January 2021, the Company acquires seven floor cleaning machines at a cost of $15,000 each. Because of their extremely heavy usage, they must be replaced in December, 2021. They are replaced with seven new floor cleaning machines at a cost of $16,000 each. The Company receiveda trade in allow ance of $2,000 for each of the replaced machines. Required: Indicate the amount(s) that would be deducted from 2021 business income if no election is made to put each floor cleaning machine in a separate class. Contrast this with the deduction(s) that vould be available if the separate class election is used. Floor cleaninq machines vould be
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The amount that would be deducted in the income for 20... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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