A company purchased new mining equipment in year 2014 by paying ​$500,000 cash. The company used ​MACRS-GDS depreciation for tax purposes and sold the asset in year 2016. Note that MACRS depreciations are based on calender years.   what is the depreciation that company claimed on the asset for 2017? * explain in full detail

Q: ABC purchases a piece of equipment of January 1, 2016. The cost of the equipment is $46,000. The…

A: The depreciation expense is charged on the fixed assets as a reduction in the value of the fixed…

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Q: a. What is Dain's maximum §179 expense for the year? b. What is Dain's maximum depreciation expense…

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Q: Francis Corporation purchased an asset at a cost of $50,000 on March 1, 2017. The asset has a useful…

A:

Q: On January 1, 2013, Ameen Company purchased a building for $36 million. Ameen uses straight-line…

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Q: Provide Answer with calculation and explanation

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A: given   Assume that for a particular company the only temporary difference for tax-effect accounting…

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Q: (a) How much depreciation did the company claim on the equipment for the year 2015? O A. $14,290 O…

A: solution given Date of purchase 2015 Cost $100,000 Method used MACRS-GDS Life…

Q: In 2017, Bailey Corporation discovered that equipment purchased on January 1, 2015, for $50,000 was…

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Q: The Jordan Corp (C Corporation), a calendar year taxpayer, sold a piece of equipment, a piece of…

A: As this is a multi part questions and based on our policy we are answering first 3 part if you want…

Q: Industries Corp bought a glass making machine on January 1, 2018 for $31,250. The company did not…

A: MACRS is accelerated depreciation method in which more depreciation during the initial years.

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A: Solution 34: Computation of Depreciaton - Sum of digit of years Year Asset Cost Depreciation…

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.