On January 1, 2015, Smith-Jones Company purchased office furniture for $80,000. Other data on the purchase...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2015, Smith-Jones Company purchased office furniture for $80,000. Other data on the purchase include the following: Estimated useful life 10 years MACRS life 7 years Estimated residual value $5,000 Financial statement depreciation Straight-line MACRS depreciation 200% declining balance The MACRS Depreciation table is as follows: MACRS Depreciation as a Percentage of the Cost of the Asset Year of Life 3 5 7 10 33.33% 20.00% 14.29% 10.00% 44.45% 32.00% 24.49% 18.00% 3 14.81% 19.20% 17.49% 14.40% 4 7.41% 11.52% 12.49% 11.52% 11.52% 8.93% 9.22% 6 5.76% 8.92% 7.37% 7 8.93% 6.55% 4.46% 6.55% 9 6.56% 10 6.55% 11 3.28% Required: Compute the depreciation deduction for the 2015 tax return. Assume the asset is sold on April 1, 2023 for $3,000. Compute the gain/loss on disposal for both financial reporting and tax reporting. On January 1, 2015, Smith-Jones Company purchased office furniture for $80,000. Other data on the purchase include the following: Estimated useful life 10 years MACRS life 7 years Estimated residual value $5,000 Financial statement depreciation Straight-line MACRS depreciation 200% declining balance The MACRS Depreciation table is as follows: MACRS Depreciation as a Percentage of the Cost of the Asset Year of Life 3 5 7 10 33.33% 20.00% 14.29% 10.00% 44.45% 32.00% 24.49% 18.00% 3 14.81% 19.20% 17.49% 14.40% 4 7.41% 11.52% 12.49% 11.52% 11.52% 8.93% 9.22% 6 5.76% 8.92% 7.37% 7 8.93% 6.55% 4.46% 6.55% 9 6.56% 10 6.55% 11 3.28% Required: Compute the depreciation deduction for the 2015 tax return. Assume the asset is sold on April 1, 2023 for $3,000. Compute the gain/loss on disposal for both financial reporting and tax reporting.
Expert Answer:
Related Book For
Financial Accounting
ISBN: 978-0134127620
11th edition
Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz
Posted Date:
Students also viewed these accounting questions
-
= 3. Consider a nonsingular matrix A (i.e., A- exists). A new matrix B formed by making a rank-1 change to A. Verify that B- is given by 1 B A--aAuv A-, = for some scalar a, and give an expression...
-
Let rt is the spot rate for a t-year maturity zero coupon bond. (i) Find an expression for f[k-1,k] in terms of the rt's. (ii) Show that (1 + f[0,1]) (1 + f[1,2]) for k = 1, 2, ..., n. . (1 +...
-
Which of the following is/are correct statement(s) pertaining to India's relation with China? (A) China is the focal point of India's 'Look East Policy' (B) India is one of the largest investigators...
-
1. How far can an economist contribute to this normative debate over the desirability of an excise tax? 2. What is the excess burden of a lump-sum tax? (For a clue, see Figure 12.14.)
-
A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells for $44. a. What is the total rate of return on the stock? b. What are the dividend...
-
For water flowing in a 0.1-in.-diameter tube, the velocity distribution is parabolic (see Example 4.2). If the average velocity is 2 fps, determine the magnitude of the shear stress at the tube wall.
-
A university pumps its water from wells located on campus. The falling water table has caused pumping costs to increase, the quantity of water available to decrease, and the quality of water to...
-
Sharp Company manufactures a product for which the following standards have been set: During March, the company purchased direct materials at a cost of $55,650, all of which were used in the...
-
Explain the ways in which the firms and industries that led cities' recoveries from de-industrialization are similar and different from the firms and industries that led the industrial revolution....
-
Blair Jokinen is a sales manager for Pearson, one of the top publishing companies in the world. Blair manages 40 sales representatives who visit college professors in Europe. On Saturday mornings,...
-
The cross-section of the embedded-free-end beam, whose loading condition is given below, is symmetrical with respect to the horizontal axis and the wall thickness t is the same everywhere. According...
-
Where do you think the future of e-commerce is headed?
-
MicroDrive's free cash flow is expected to be 100 million , 200 million , and 500 million in the next 1st , 2nd , and 3rd year . After 3 years , the free cash flow will constantly grow at 10 % . WACC...
-
MIPS is the Merit-based Incentive Payment Systems that most providers will fall under for payment adjustment option. What four components will be used for the composite score?
-
describe the ethical issues of global supply chain as it pertains to the UN definition of sustainability. How does this impact cost?
-
Kite ABCD is translated (x-2, y + 3) and then rotated 90 about the origin in the counterclockwise direction. Complete the table to show the locations of A", B", C", and D" after both transformations....
-
Use Appendix 14A. EShack sells an ergonomic keyboard in one of its stores. Average weekly demand for this keyboard follows a Poisson distribution with mean 0.8 unit. It submits orders to the supplier...
-
Explain the Hawthorne effect.
-
Gerbig, Inc., collects cash from customers in advance and from other customers after the sale. Journalize the following transactions for Gerbig: a. Accrued revenue. Some customers pay Gerbig after...
-
The accounts of Custom Patio Service, Inc., follow with their normal balances at April 30, 2016. The accounts are listed in no particular order. Requirements 1. Prepare the company's trial balance at...
-
Charley Company borrowed money by issuing $2,000,000 of 6% bonds payable at 101.5 on July 1, 2016. The bonds are five-year bonds and pay interest each January 1 and July 1. 1. How much cash did...
-
Show that the Lorentz group commutation relations (13.20) are satisfied by the choices \(K_{i}= \pm \frac{i}{2} \sigma_{i}\) and \(J_{i}=\frac{1}{2} \sigma_{i}\), where the \(\sigma_{i}\) are Pauli...
-
Find the relationship of the eight SU(3) operators \(T_{ \pm}, V_{ \pm}, U_{ \pm}, T_{3}\), and \(Y\) defined in Eqs. (8.2) and (8.7)-(8.8), and the nine oscillator operators \(\left(A_{i}^{j}...
-
Verify that the set of matrices (5.14) is closed under ordinary matrix multiplication. Data from Eq. 5.14 T(oc)= = 629 > - (+19) TOO) = (721) TO) = ( ). T(oa)= T(b) TO) -(11) T(4-(11) TO=(9) T(C3)= =
Study smarter with the SolutionInn App