Harris Corporation is a technology start-up in its second year of operations. The company didn't purchase any assets this year but purchased the following assets in 2023: Asset Placed in Service Basis Office equipment August 14 $ 11,000 Manufacturing equipment April 15 78,000 Computer system June 1 26,000 Total $ 115,000 Harris did not know depreciation was tax deductible until it hired an accountant this year and didn't claim any depreciation deduction in its first year of operation. (Use MACRS Table 1 and Table 2.) Note: Leave no answer blank. Enter zero if applicable. b. What is the basis of the assets at the end of the second year? I came up with Office Equipment $5,280 Manufacturing $47,752 Computer System $12,480 That is marked wrong. Please help.
Harris Corporation is a technology start-up in its second year of operations. The company didn't purchase any assets this year but purchased the following assets in 2023: Asset Placed in Service Basis Office equipment August 14 $ 11,000 Manufacturing equipment April 15 78,000 Computer system June 1 26,000 Total $ 115,000 Harris did not know depreciation was tax deductible until it hired an accountant this year and didn't claim any depreciation deduction in its first year of operation. (Use MACRS Table 1 and Table 2.) Note: Leave no answer blank. Enter zero if applicable. b. What is the basis of the assets at the end of the second year? I came up with Office Equipment $5,280 Manufacturing $47,752 Computer System $12,480 That is marked wrong. Please help.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Harris Corporation is a technology start-up in its second year of operations. The company didn't purchase any assets this
year but purchased the following assets in 2023:
Asset Placed in Service Basis
Office equipment August 14 $ 11,000
Manufacturing equipment April 15 78,000
Computer system June 1 26,000
Total $ 115,000
Harris did not know depreciation was tax deductible until it hired an accountant this year and didn't claim any
depreciation deduction in its first year of operation. (Use MACRS Table 1 and Table 2.)
Note: Leave no answer blank. Enter zero if applicable.
b. What is the basis of the assets at the end of the second year?
I came up with Office Equipment $5,280
Manufacturing $47,752
Computer System $12,480
That is marked wrong. Please help.
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