O'Leary Engineering Corp. has been depreciating a $50,000 machine for the last 3 years. The asset...

 

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O'Leary Engineering Corp. has been depreciating a $50,000 machine for the last 3 years. The asset was just sold for 60% of its first cost. What is the size of the recaptured depreciation or loss at disposal using the following depreciation methods? (a) Straight-line with N = 8 and S = 2000 (b) Double declining balance with N = 8 (c) 40% bonus depreciation with the balance using 7-year MACRS O'Leary Engineering Corp. has been depreciating a $50,000 machine for the last 3 years. The asset was just sold for 60% of its first cost. What is the size of the recaptured depreciation or loss at disposal using the following depreciation methods? (a) Straight-line with N = 8 and S = 2000 (b) Double declining balance with N = 8 (c) 40% bonus depreciation with the balance using 7-year MACRS

Answer rating: 100% (QA)

a Sumofyearsdigits with N8 and S2000 SOYD d d d d NN1 2 821 36 Nt1 SOYD 831 36 811 50000 2000 10667 ... View the full answer