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…

Q: Suppose a computer software developer for a certain company purchased a computer system for $95,000…

A: Basis for Depreciation:The basis for depreciation is the cost of the computer system minus any…

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

A: a. Dain’s Maximum §179 Expenses for the Year:The maximum §179 expense is limited to the taxable…

Q: Provide Answer with calculation and explanation

A: Step 1: Introduction to the Net Income:When we deduct all the expenses in a particular accounting…

Q: Explain in detail using relevant tax laws and cases whether this amount of $70,000 is deductible for…

A: Tax laws can be defined as the governing laws which helps the companies or the taxpayers to take…

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

A: Prepare Bailey’s 2017 journal entry to correct the error. Bailey uses straight-line depreciation.

Q: (Book vs. Tax (MACRS) Depreciation) Shimei Inc. purchased computer equipment on March 1, 2017, for…

A: Depreciation:   Depreciation expense is a non-cash expense, which is recorded on the income…

Q: Lopez acquired a building on June 1, 2016, for $1,000,000. Compute the depreciation deduction…

A: Solution Depreciation means to reduction the cost of an asset over its useful life. Depreciation are…

Q: The Company purchased an asset on January 1, 2005, for $200,000. The straight-line method of…

A: Question: 1 Deferred Tax Liability:Deferred tax liability relates to the tax, which is expected to…

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

A: Depreciation refers to the permanent decline in value of tangible assets, because of wear and tear…

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: A long-term asset was purchased at the beginning of 2021. It has a 2-year life and no salvage value.…

A: Sstraight-line depreciation for financial purpose = ($480 + $270) /2 = $375

Q: 9: $100,000 2020: $70,000 2021: $120,000 Company purchased assets costing $120,000 on January 1,…

A: Change of Depreciation Method for Tax Purposes and Reporting of Financial Statements. There are…

Q: Oriole Corporation purchased a machine on January 2, 2020, for $4300000. The machine has an…

A: Deferred tax liabilities (DTL) represent the current obligation of assessed tax which is not yet…

Q: In 2025, Sandhill Company discovered an error while preparing its 2025 financial statements. A…

A: In line with the accrual accounting principle, the calculation adjusts Accumulated Depreciation by…

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.