### Asset Depreciation ExampleAt the beginning of the year, Anna started a calendar-year business and placed the following assets in service:#### Asset Details:| Asset | Date Acquired | Cost Basis ||-----------------|---------------|------------|| Computers | 1/30 | $64,000 || Office Desks | 2/15 | $68,000 || Machinery | 7/25 | $111,000 || Office Building | 8/13 | $448,000 |Anna does not elect §179 expensing and chooses not to use bonus depreciation. You are to answer the following questions using MACRS depreciation guidelines (Refer to MACRS Tables 1 to 5). Calculations should not be rounded intermediate steps but should round the final answers to the nearest whole dollar.#### Question:**b. What is Anna’s year 2 cost recovery for each asset?**#### Year 2 Cost Recovery:| Asset | Year 2 Cost Recovery ||-----------------|----------------------|| Computers | $20,480 || Office Desks | $16,653 || Machinery | $27,184 || Office Building | -- (No amount given) || **Total** | **$75,786** |This table shows the cost recovery amounts for each asset in the second year.

The cost recovery technique, often known as cost recovery, is a way of recouping the cost of any…

At the beginning of the year, Anna began a calendar-year business and placed in year: Date Acquired 1/30 2/15 7/25 8/13 Asset Cost Basis $ 64,000 $ 68,000 $ 111,000 $ 448,000 Computers Office desks Machinery Office building Assuming Anna does not elect §179 expensing and elects not to use bonus depr questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not ro your final answers to the nearest whole dollar amount.) at 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 year: Date Acquired 1/30 2/15 7/25 8/13 Asset Cost Basis $ 64,000 $ 68,000 $ 111,000 $ 448,000 Computers Office desks Machinery Office building Assuming Anna does not elect §179 expensing and elects not to use bonus depr questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not ro your final answers to the nearest whole dollar amount.) at is Anna's year 2 cost recovery for each asset?

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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DLW Corporation acquired and placed in service the following assets during the year: Asset Date Acquired Cost Basis Computer equipment 2/17 $ 10,000 Furniture 5/12 $ 17,000 Commercial building 11/1 $ 270,000 Assuming DLW 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.) b. What is DLW's year 3 cost recovery for each asset if DLW sells these assets on 1/23 of year 3?
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DLW Corporation acquired and placed in service the following assets during the year: Asset Date Acquired Cost Basis Computer equipment 3/11 $ 18,000 Furniture 3/7 $ 23,500 Commercial building 9/15 $ 317,000 Assuming DLW 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.) b. What is DLW's year 3 cost recovery for each asset if DLW sells these assets on 2/24 of year 3?
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Required information Skip to question [The following information applies to the questions displayed below.] At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the year: Asset Date Acquired Cost Basis Computers 1/30 $ 28,000 Office desks 2/15 $ 32,000 Machinery 7/25 $ 75,000 Office building 8/13 $ 400,000 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.) Note: 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?
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