Problem 8-31 (LO. 2, 3)Orange Corporation acquired new office furniture on August 15, 2020, for $130,000. Orange does not elect immediate expensing under 5179. Orange claims any available additional first-year depreciation.If required, round your answer to the nearest dollar.Click here to access Exhibit 8.1 and the depreciation tables in the textbook.a. Determine Orange's cost recovery for 2020.The office furniture is classified as seven-year v class of property for MACRS.If bonus depreciation is elected, Orange's deduction is $9,289 xb. Determine Orange's cost recovery for 2020 if Orange decided to only use $52,000 of bonus depreciation and normal MACRS on thebalance of the acquisition cost.74,289 X

a. O uses an additional first year, depreciation for office furniture. Hence, he can deduct entire…

a. Determine Orange's cost recovery for 2020. The office furniture is classified as seven-year dass of property for MACRS. If bonus depreciation is elected, Orange's deduction is s 9,289 X b. Determine Orange's cost recovery for 2020 ir Orange decided to only use $52,000 of bonus depreciation and normal MACRS on the balance of the acquisition cost. 74,289 X

a. Determine Orange's cost recovery for 2020. The office furniture is classified as seven-year dass of property for MACRS. If bonus depreciation is elected, Orange's deduction is s 9,289 X b. Determine Orange's cost recovery for 2020 ir Orange decided to only use $52,000 of bonus depreciation and normal MACRS on the balance of the acquisition cost. 74,289 X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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