please answer in full and provide the working paper along with the excel spreadsheet. will need to use 2023 depreciation rate table for calculations.

Transcribed Image Text:

Required: (1) Prepare a Working paper which shows the following: > Calculation of the amount Bonus Depreciation, MACRS Depreciation and Amortization for 2023. > Assume for years prior to 2023 no Section 179 or bonus depreciation were taken. For 2023 No Section 179 will be elected, Bonus Depreciation for Machinery 7 year will be elected out of. > Properly report the transactions on an excel spreadsheet showing, current year bonus depreciation, current year depreciation, current year amortization, current year amortization on prior year intangibles and depreciation on prior year assets > Do not recalculate Accumulated Depreciation. Assume it is correct. Assets: Asset 1/1/23 Date Convention/yr Cost Accumulated Depreciation Machinery 2/1/20 MACRS HY/7 100,000 56,270 Building 1/1/20 S/L MM/39 300,000 22,767 Land 1/1/20 None 125,000 Computers 7/1/20 MACRS HY/5 60,000 42,720 Machinery 1/1/22 MACRS HY/7 20,000 2,858 Patent 2/1/22 S/L 180 Months 80,000 4,889 Computers 2/1/23 MACRS HY/5 30,000 Machinery 7/1/23 MACRS HY/7 40,000 Patent 6/1/23 S/L 180 Months 100,000 Required: (1) Prepare a Working paper which shows the following: > Calculation of the amount Bonus Depreciation, MACRS Depreciation and Amortization for 2023. > Assume for years prior to 2023 no Section 179 or bonus depreciation were taken. For 2023 No Section 179 will be elected, Bonus Depreciation for Machinery 7 year will be elected out of. > Properly report the transactions on an excel spreadsheet showing, current year bonus depreciation, current year depreciation, current year amortization, current year amortization on prior year intangibles and depreciation on prior year assets > Do not recalculate Accumulated Depreciation. Assume it is correct. Assets: Asset 1/1/23 Date Convention/yr Cost Accumulated Depreciation Machinery 2/1/20 MACRS HY/7 100,000 56,270 Building 1/1/20 S/L MM/39 300,000 22,767 Land 1/1/20 None 125,000 Computers 7/1/20 MACRS HY/5 60,000 42,720 Machinery 1/1/22 MACRS HY/7 20,000 2,858 Patent 2/1/22 S/L 180 Months 80,000 4,889 Computers 2/1/23 MACRS HY/5 30,000 Machinery 7/1/23 MACRS HY/7 40,000 Patent 6/1/23 S/L 180 Months 100,000