5 20 Problem 07-17 (Algo) [LO 7-5, 7-11] points Skipped eBook Suber, Incorporated, a calendar year taxpayer, purchased equipment for $850,000 and placed it in service on March 1. Suber's chief engineer determined that the equipment had an estimated useful life of 120 months and a $55,000 residual value. For financial statement purposes, Suber uses the straight-line method to compute depreciation. Use Table 7-2. Required: a. Compute book depreciation for the year. b. Assuming that the equipment has a seven-year recovery period and is subject to the half-year convention, compute MACRS depreciation for the year. c. Compute Suber's book basis and tax basis in the equipment at the beginning of next year. Print Complete this question by entering your answers in the tabs below. References Required A Required B Required C Mc Graw Hill Compute book depreciation for the year. Book depreciation < Prev 20 of 20 Next > Check my work TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year Depreciation Rate 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231
5 20 Problem 07-17 (Algo) [LO 7-5, 7-11] points Skipped eBook Suber, Incorporated, a calendar year taxpayer, purchased equipment for $850,000 and placed it in service on March 1. Suber's chief engineer determined that the equipment had an estimated useful life of 120 months and a $55,000 residual value. For financial statement purposes, Suber uses the straight-line method to compute depreciation. Use Table 7-2. Required: a. Compute book depreciation for the year. b. Assuming that the equipment has a seven-year recovery period and is subject to the half-year convention, compute MACRS depreciation for the year. c. Compute Suber's book basis and tax basis in the equipment at the beginning of next year. Print Complete this question by entering your answers in the tabs below. References Required A Required B Required C Mc Graw Hill Compute book depreciation for the year. Book depreciation < Prev 20 of 20 Next > Check my work TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year Depreciation Rate 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 1BD
Related questions
Question
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![5
20
Problem 07-17 (Algo) [LO 7-5, 7-11]
points
Skipped
eBook
Suber, Incorporated, a calendar year taxpayer, purchased equipment for $850,000 and placed it in service on March 1. Suber's chief
engineer determined that the equipment had an estimated useful life of 120 months and a $55,000 residual value. For financial
statement purposes, Suber uses the straight-line method to compute depreciation. Use Table 7-2.
Required:
a. Compute book depreciation for the year.
b. Assuming that the equipment has a seven-year recovery period and is subject to the half-year convention, compute MACRS
depreciation for the year.
c. Compute Suber's book basis and tax basis in the equipment at the beginning of next year.
Print
Complete this question by entering your answers in the tabs below.
References
Required A Required B
Required C
Mc
Graw
Hill
Compute book depreciation for the year.
Book depreciation
<Required A
Required B >
< Prev
20 of 20
Next >
Check my work](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8514667-bf86-4079-a5fb-967fac7b38d7%2Fe6391a41-be39-4fd3-b7d4-f9d00ab0c7af%2Fflxfrs_processed.png&w=3840&q=75)
Transcribed Image Text:5
20
Problem 07-17 (Algo) [LO 7-5, 7-11]
points
Skipped
eBook
Suber, Incorporated, a calendar year taxpayer, purchased equipment for $850,000 and placed it in service on March 1. Suber's chief
engineer determined that the equipment had an estimated useful life of 120 months and a $55,000 residual value. For financial
statement purposes, Suber uses the straight-line method to compute depreciation. Use Table 7-2.
Required:
a. Compute book depreciation for the year.
b. Assuming that the equipment has a seven-year recovery period and is subject to the half-year convention, compute MACRS
depreciation for the year.
c. Compute Suber's book basis and tax basis in the equipment at the beginning of next year.
Print
Complete this question by entering your answers in the tabs below.
References
Required A Required B
Required C
Mc
Graw
Hill
Compute book depreciation for the year.
Book depreciation
<Required A
Required B >
< Prev
20 of 20
Next >
Check my work
Transcribed Image Text:TABLE 7.2 MACRS for Business Personalty (Half-Year Convention)
Recovery Period
3-Year
5-Year
7-Year
10-Year
15-Year
20-Year
Year
Depreciation Rate
1
33.33%
20.00%
14.29%
10.00%
5.00%
3.750%
2
44.45
32.00
24.49
18.00
9.50
7.219
3
14.81
19.20
17.49
14.40
8.55
6.677
4
7.41
11.52
12.49
11.52
7.70
6.177
5
11.52
8.93
9.22
6.93
5.713
6
5.76
8.92
7.37
6.23
5.285
7
8.93
6.55
5.90
4.888
8
4.46
6.55
5.90
4.522
9
6.56
5.91
4.462
10
6.55
5.90
4.461
11
3.28
5.91
4.462
12
5.90
4.461
13
5.91
4.462
14
5.90
4.461
15
5.91
4.462
16
2.95
4.461
17
4.462
18
4.461
19
4.462
20
4.461
21
2.231
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