On 6/2/Y3, Brad sold the car purchased in Y1 for $7,500. On 10/3/Y3, Brad sold the equipment purchased in Y2 for $9000. 3) What's Brad's total depreciation deduction in Y3? Intangibles-Goodwill M purchased a business for $500,000 on 1/1/x1. The business has the following assets: Accounts Receivable Land with a FMV of Building with a FMV of Equipment (7-year MACRS) with FMV of Total FMV of identifiable assets Goodwill comprises the remainder paid Total purchase price of business $40,000 $90,000 $100,000 X 2 u61- $150,000 $380,000 $120,000 /160th • 12= $500,000 Compute the MACRS and amortization deduction for Y1.
On 6/2/Y3, Brad sold the car purchased in Y1 for $7,500. On 10/3/Y3, Brad sold the equipment purchased in Y2 for $9000. 3) What's Brad's total depreciation deduction in Y3? Intangibles-Goodwill M purchased a business for $500,000 on 1/1/x1. The business has the following assets: Accounts Receivable Land with a FMV of Building with a FMV of Equipment (7-year MACRS) with FMV of Total FMV of identifiable assets Goodwill comprises the remainder paid Total purchase price of business $40,000 $90,000 $100,000 X 2 u61- $150,000 $380,000 $120,000 /160th • 12= $500,000 Compute the MACRS and amortization deduction for Y1.
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 12PA: Garcia Co. owns equipment that costs $76,800, with accumulated depreciation of $40,800. Garcia sells...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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