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Consider a five-year MACRS asset purchased at $75,000. (Note that a five-year MACRS property class is depreciated over six years due to the half-year convention. The applicable salvage values would be $40,000 in year 3, $30,000 in year 5, and $10,000 in year 6.) 1 Click the icon to view the MACRS depreciation schedules. (a) Compute the gain or loss amount when the asset is disposed of in Year 3. The taxable gain or loss amount when the asset is disposed of in Year 3 is $ (Round to the nearest dollar.) (b) Compute the gain loss amount when the asset is disposed of in Year 5. The taxable gain or loss amount when the asset is disposed of in Year 5 is $ (Round to the nearest dollar.) (c) Compute the gain or loss amount when the asset is disposed of in Year 6 The taxable gain or loss amount when the asset is disposed of in Year 6 is $ (Round to the nearest dollar.)

Consider a five-year MACRS asset purchased at $75,000. (Note that a five-year MACRS property class is depreciated over six years due to the half-year convention. The applicable salvage values would be $40,000 in year 3, $30,000 in year 5, and $10,000 in year 6.) 1 Click the icon to view the MACRS depreciation schedules. (a) Compute the gain or loss amount when the asset is disposed of in Year 3. The taxable gain or loss amount when the asset is disposed of in Year 3 is $ (Round to the nearest dollar.) (b) Compute the gain loss amount when the asset is disposed of in Year 5. The taxable gain or loss amount when the asset is disposed of in Year 5 is $ (Round to the nearest dollar.) (c) Compute the gain or loss amount when the asset is disposed of in Year 6 The taxable gain or loss amount when the asset is disposed of in Year 6 is $ (Round to the nearest dollar.)

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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1: More Info Class 3 5 7 10 15 20 Depreciation Year n 200% 200% 200% 200% 150% 150% rate 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81" 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 4.46 6.55 5.90 4.522 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 Year to switch from declining balance to straight line
Transcribed Image Text:1: More Info Class 3 5 7 10 15 20 Depreciation Year n 200% 200% 200% 200% 150% 150% rate 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81" 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 4.46 6.55 5.90 4.522 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 Year to switch from declining balance to straight line
10. Consider a five-year MACRS asset purchased at $75,000. (Note that a five-year MACRS property class is depreciated over six years due to the half-year convention. The applicable salvage values would be $40,000 in year 3, $30,000 in year 5, and $10,000 in year 6.) 1 Click the icon to view the MACRS depreciation schedules. (a) Compute the gain or loss amount when the asset is disposed of in Year 3. The taxable gain or loss amount when the asset is disposed of in Year 3 is $ (Round to the nearest dollar.) (b) Compute the gain or loss amount when the asset is disposed of in Year 5. The taxable gain or loss amount when the asset is disposed of in Year 5 is $ (Round to the nearest dollar.) (c) Compute the gain or loss amount when the asset is disposed of in Year 6. The taxable gain or loss amount when the asset is disposed of in Year 6 is $ (Round to the nearest dollar.)
Transcribed Image Text:10. Consider a five-year MACRS asset purchased at $75,000. (Note that a five-year MACRS property class is depreciated over six years due to the half-year convention. The applicable salvage values would be $40,000 in year 3, $30,000 in year 5, and $10,000 in year 6.) 1 Click the icon to view the MACRS depreciation schedules. (a) Compute the gain or loss amount when the asset is disposed of in Year 3. The taxable gain or loss amount when the asset is disposed of in Year 3 is $ (Round to the nearest dollar.) (b) Compute the gain or loss amount when the asset is disposed of in Year 5. The taxable gain or loss amount when the asset is disposed of in Year 5 is $ (Round to the nearest dollar.) (c) Compute the gain or loss amount when the asset is disposed of in Year 6. The taxable gain or loss amount when the asset is disposed of in Year 6 is $ (Round to the nearest dollar.)
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