For the following scenario, determine the dollar amount of book-tax difference (if any) written as a positive number. Ramco Tooling purchased new equipment on January 1, Year 1 for $90,000. In Year 1, Ramco took $21,000 in Sec. 179 expense on the equipment and $20,000 in bonus depreciation on the equipment. In addition, it took $13,000 in regular MACRS depreciation on the equipment in Year 1. For book purposes, Ramco estimates the useful life of the equipment is 9 years and uses straight-line depreciation. OI. $23,000 O II. $44,000 O III. $3,000 O IV. $0 OV. None of the answers given here. OVI. $24,000
For the following scenario, determine the dollar amount of book-tax difference (if any) written as a positive number. Ramco Tooling purchased new equipment on January 1, Year 1 for $90,000. In Year 1, Ramco took $21,000 in Sec. 179 expense on the equipment and $20,000 in bonus depreciation on the equipment. In addition, it took $13,000 in regular MACRS depreciation on the equipment in Year 1. For book purposes, Ramco estimates the useful life of the equipment is 9 years and uses straight-line depreciation. OI. $23,000 O II. $44,000 O III. $3,000 O IV. $0 OV. None of the answers given here. OVI. $24,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![For the following scenario, determine the dollar amount of book-tax difference (if any) written as a positive number.
Ramco Tooling purchased new equipment on January 1, Year 1 for $90,000. In Year 1, Ramco took $21,000 in Sec. 179 expense on the
equipment and $20,000 in bonus depreciation on the equipment. In addition, it took $13,000 in regular MACRS depreciation on the equipment
in Year 1. For book purposes, Ramco estimates the useful life of the equipment is 9 years and uses straight-line depreciation.
OI. $23,000
O II. $44,000
O III. $3,000
O IV. $0
OV. None of the answers given here.
O VI. $24,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F92464fdc-b4d0-4743-9f87-ee89a4c65e6e%2F4086a446-a633-4a60-92b8-90caf0ea1bde%2Fann5olv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For the following scenario, determine the dollar amount of book-tax difference (if any) written as a positive number.
Ramco Tooling purchased new equipment on January 1, Year 1 for $90,000. In Year 1, Ramco took $21,000 in Sec. 179 expense on the
equipment and $20,000 in bonus depreciation on the equipment. In addition, it took $13,000 in regular MACRS depreciation on the equipment
in Year 1. For book purposes, Ramco estimates the useful life of the equipment is 9 years and uses straight-line depreciation.
OI. $23,000
O II. $44,000
O III. $3,000
O IV. $0
OV. None of the answers given here.
O VI. $24,000
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