A manufacturer of aerospace products purchased three flexible assembly cells for $500,000 each. Delivery and insurance charges
Question:
A manufacturer of aerospace products purchased three flexible assembly cells for $500,000 each. Delivery and insurance charges were $35,000, and installation of the cells cost another $50,000.
a. Determine the cost basis of the three cells.
b. What is the class life of the cells?
c. What is the MACRS depreciation in year five?
d. If the cells are sold to another company for $120,000 each at the end of year six, how much is the recaptured depreciation?
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a Cost basis 1500000 35000 50000 1585000 b From Table 72 the class life is 10 ye...View the full answer
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ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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