a. What is Poplock’s year 1 depreciation deduction for each asset? b. What is Poplock’s year 2 depreciation deduction for each asset?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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At the beginning of the current year, Poplock began a calendar-year dog boarding business called Griff's Palace. Poplock bought and placed in service the following assets during the year:

 

 
  Date Cost
Asset Placed in Service Basis
Computer equipment 3/23 $ 8,400
Dog-grooming furniture 5/12   10,400
Pickup truck 9/17   10,000
Commercial building 10/11   304,000
Land (one acre) 10/11   114,000

 

 

Assuming Poplock 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.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

 

 

a. What is Poplock’s year 1 depreciation deduction for each asset?

b. What is Poplock’s year 2 depreciation deduction for each asset? 

 

 

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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