DLW Corporation acquired and placed in service the following assets during the year: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Date Acquired Cost Basis Computer 2/19 $ 16,300 equipment Furniture 4/27 22,900 Commercial building 10/2 319,000 Assuming DLW does not elect §179 expensing or bonus depreciation, answer the following questions: a. What is DLW's year 1 cost recovery for each asset? (Round your answers to the nearest dollar amount.) b. What is DLW's year 3 cost recovery for each asset if DLW sells all of these assets on 1/15 of year 3?(Round your answers to the nearest dollar amount.)

DLW Corporation acquired and placed in service the following assets during the year: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Date Acquired Cost Basis Computer 2/19 $ 16,300 equipment Furniture 4/27 22,900 Commercial building 10/2 319,000 Assuming DLW does not elect §179 expensing or bonus depreciation, answer the following questions: a. What is DLW's year 1 cost recovery for each asset? (Round your answers to the nearest dollar amount.) b. What is DLW's year 3 cost recovery for each asset if DLW sells all of these assets on 1/15 of year 3?(Round your answers to the nearest dollar amount.)

Name: DLW Corporation acquired and placed in service the following assets d
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Description: DLW Corporation acquired and placed in service the following assets during theyear: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)AssetDateAcquiredCostBasisComputer2/19$ 16,300equipmentFurniture4/2722,900Commercialbuilding10/2319,000Ass

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

DLW Corporation acquired and placed in service the following assets during the
year: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
Asset
Date
Acquired
Cost
Basis
Computer
2/19
$ 16,300
equipment
Furniture
4/27
22,900
Commercial
building
10/2
319,000
Assuming DLW does not elect §179 expensing or bonus depreciation, answer the
following questions:
a.
What is DLW's year 1 cost recovery for each asset? (Round your answers to the
nearest dollar amount.)
b.
What is DLW's year 3 cost recovery for each asset if DLW sells all of these
assets on 1/15 of year 3?(Round your answers to the nearest dollar amount.)

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