university. She used her old dish machine for as long as she could, but it is...

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university. She used her old dish machine for as long as she could, but it is finally beyond repair! So, she has purchased a 5. Mahnoor Gandapur is the general manager of a Pakistani-themed restaurant located near the campus of a lare new dish machine for $21,400 that she will fully depreciate with no salvage value (according to current tax Jaws) According to the MACRS property class table, the dish machine has a seven-year class life. Help Mahnoor complete her depreciation schedule below for the dish machine using MACRS deprecation an d answer the questions that follow. Purchase Price $21,400 Recovery Year 7-Year Property (%) Depreciation on Dish Machine ($) 1 14.29 2 24.49 3 17.49 4 12.49 8.93 6. 8.92 7 8.93 8. 4.46 Total 100.00 a. Since the dish machine has a seven-year class life, why is it depreciated over eight years? b. Why are the depreciation percentages more during the first four years than the last four years? c. If Mahnoor were going to sell the dish machine for a salvage value instead of depreciating it fully, how would this change her depreciation calculations? a. What was b. What was d. If Mahnoor sold the dish machine before it was fully depreciation for less than her purchase price, would this represent a capital gain or a capital loss? How would this affect her taxes? c. Assume th sale at a p d. Assume D e. Assume that Mahnoor's operation is subject to a 30% tax on profits. What will be Mahnoor's tax savings over the eight-year period for which she will depreciate the dish machine? Explain your answer. what pric f. Based on the above question, what percentage of the dish machine's total purchase price could be considered to have been "paid for" by tax savings? Explain your answer. e. In additic this prope 7. Yui Kobayash 10 Southeastern university. She used her old dish machine for as long as she could, but it is finally beyond repair! So, she has purchased a 5. Mahnoor Gandapur is the general manager of a Pakistani-themed restaurant located near the campus of a lare new dish machine for $21,400 that she will fully depreciate with no salvage value (according to current tax Jaws) According to the MACRS property class table, the dish machine has a seven-year class life. Help Mahnoor complete her depreciation schedule below for the dish machine using MACRS deprecation an d answer the questions that follow. Purchase Price $21,400 Recovery Year 7-Year Property (%) Depreciation on Dish Machine ($) 1 14.29 2 24.49 3 17.49 4 12.49 8.93 6. 8.92 7 8.93 8. 4.46 Total 100.00 a. Since the dish machine has a seven-year class life, why is it depreciated over eight years? b. Why are the depreciation percentages more during the first four years than the last four years? c. If Mahnoor were going to sell the dish machine for a salvage value instead of depreciating it fully, how would this change her depreciation calculations? a. What was b. What was d. If Mahnoor sold the dish machine before it was fully depreciation for less than her purchase price, would this represent a capital gain or a capital loss? How would this affect her taxes? c. Assume th sale at a p d. Assume D e. Assume that Mahnoor's operation is subject to a 30% tax on profits. What will be Mahnoor's tax savings over the eight-year period for which she will depreciate the dish machine? Explain your answer. what pric f. Based on the above question, what percentage of the dish machine's total purchase price could be considered to have been "paid for" by tax savings? Explain your answer. e. In additic this prope 7. Yui Kobayash 10 Southeastern