On April 5, 2023, Kinsey places in service a new automobile that cost $67,250. He does not elect § 179 expensing, and he elects not totake any available additional first-year depreciation. The car is used 70% for business and 30% for personal use in each tax year.Kinsey uses the regular MACRS method of cost recovery (the auto is a 5-year asset).Click here to access the depreciation table to use for this problem.If required, round your final answers to the nearest dollar.Compute the total depreciation allowed for:7,070 X2023:2024:$$11,270 X

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Description: On April 5, 2023, Kinsey places in service a new automobile that cost $67,250. He does not elect § 179 expensing, and he elects not totake any available additional first-year depreciation. The car is used 70% for business and 30% for personal use in

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Answered: Compute the total depreciation allowed…

Business

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Compute the total depreciation allowed for: 2023: 2024: t A 7,070 X 11,270 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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Concept explainers

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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Question

On April 5, 2023, Kinsey places in service a new automobile that cost $67,250. He does not elect § 179 expensing, and he elects not to
take any available additional first-year depreciation. The car is used 70% for business and 30% for personal use in each tax year.
Kinsey uses the regular MACRS method of cost recovery (the auto is a 5-year asset).
Click here to access the depreciation table to use for this problem.
If required, round your final answers to the nearest dollar.
Compute the total depreciation allowed for:
7,070 X
2023:
2024:
$
$
11,270 X

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