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At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the year:     Date Cost Asset Acquired Basis Computers 1/30 $ 55,000 Office desks 2/15 $ 59,000 Machinery 7/25 $ 102,000 Office building 8/13 $ 436,000     Assuming Anna 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.)     a. What is Anna’s year 1 cost recovery for each asset?     b. What is Anna’s year 2 cost recovery for each asset?

At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the year:     Date Cost Asset Acquired Basis Computers 1/30 $ 55,000 Office desks 2/15 $ 59,000 Machinery 7/25 $ 102,000 Office building 8/13 $ 436,000     Assuming Anna 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.)     a. What is Anna’s year 1 cost recovery for each asset?     b. What is Anna’s year 2 cost recovery for each asset?

FINANCIAL ACCOUNTING
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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At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the year:

 

  Date Cost
Asset Acquired Basis
Computers 1/30 $ 55,000
Office desks 2/15 $ 59,000
Machinery 7/25 $ 102,000
Office building 8/13 $ 436,000
 

 

Assuming Anna 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.)

 

 

a. What is Anna’s year 1 cost recovery for each asset?


    b. What is Anna’s year 2 cost recovery for each asset?

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