A company purchased office furnitures for $300,000. The set-up charge of the furnitures was $20,000. Initially,...
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A company purchased office furnitures for $300,000. The set-up charge of the furnitures was $20,000. Initially, the declared salvage value was $60,000. However, the company decided to sell the computer in the middle of 4th year because of changing production plan. Fortunately, another company agreed to buy that computer for $70,000. Determine the gain or loss, if MACRS depreciation is used. A company purchased office furnitures for $300,000. The set-up charge of the furnitures was $20,000. Initially, the declared salvage value was $60,000. However, the company decided to sell the computer in the middle of 4th year because of changing production plan. Fortunately, another company agreed to buy that computer for $70,000. Determine the gain or loss, if MACRS depreciation is used.
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To determine the gain or loss using MACRS depreciation we first need to calculate the accumulated de... View the full answer
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