Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Required information
Problem 10-47 (LO 10-2) (Algo)
[The following information applies to the questions displayed below.]
DLW Corporation acquired and placed in service the following assets during the year:
Asset
Computer equipment
Date Acquired
2/25
Cost Basis
$ 14,000
Furniture
Commercial building
3/14
10/13
$ 19,100
$ 309,000
Assuming DLW does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions:
(Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
Problem 10-47 Part a (Algo)
a. What is DLW's year 1 cost recovery for each asset?
Year 1
Asset
Cost Recovery
Computer equipment
$
2,800
Furniture
$
2,729
Commercial building
Total
EA
5,529](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23d6635a-55e3-4f90-bcef-abb682a9648b%2F398f73cf-5c14-43e1-b8dc-bf9729eb698e%2Fetqip5k_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Problem 10-47 (LO 10-2) (Algo)
[The following information applies to the questions displayed below.]
DLW Corporation acquired and placed in service the following assets during the year:
Asset
Computer equipment
Date Acquired
2/25
Cost Basis
$ 14,000
Furniture
Commercial building
3/14
10/13
$ 19,100
$ 309,000
Assuming DLW does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions:
(Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
Problem 10-47 Part a (Algo)
a. What is DLW's year 1 cost recovery for each asset?
Year 1
Asset
Cost Recovery
Computer equipment
$
2,800
Furniture
$
2,729
Commercial building
Total
EA
5,529
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