Johnson Industries purchased a metal-working lathe for $36,000. This item will be used for business 90% of the time. Accountants elected to take a $15,000 section 179 deduction and utilize the special depreciation allowance of 50%. Prepare a depreciation schedule (in $) using MACRS. Round all dollar amounts to the nearest cent. Johnson Industries MACRS Depreciation Schedule-Metal-working Lathe End of Year Basis for Depreciation Recovery Percent MACRS Depreciation Deduction Accumulated Depreciation Book Value $4 33.33% 44.45% 14.81% || s 7.41% %3D

Johnson Industries purchased a metal-working lathe for $36,000. This item will be used for business 90% of the time. Accountants elected to take a $15,000 section 179 deduction and utilize the special depreciation allowance of 50%. Prepare a depreciation schedule (in $) using MACRS. Round all dollar amounts to the nearest cent. Johnson Industries MACRS Depreciation Schedule-Metal-working Lathe End of Year Basis for Depreciation Recovery Percent MACRS Depreciation Deduction Accumulated Depreciation Book Value $4 33.33% 44.45% 14.81% || s 7.41% %3D

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Description: Johnson Industries purchased a metal-working lathe for $36,000. This item will be used for business 90% of the time. Accountants elected to take a $15,000 section 179deduction and utilize the special depreciation allowance of 50%.Prepare a depreciat

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Johnson Industries purchased a metal-working lathe for $38,000. This item will be used for business 90% of the time. Accountants elected to take a $18,000 section 179 deduction and utilize the special depreciation allowance of 50%. Prepare a depreciation schedule (in $) using MACRS. Round all dollar amounts to the nearest cent. Johnson Industries MACRS Depreciation Schedule-Metal-working Lathe End of Year Basis for Depreciation x Recovery Percent = MACRS Depreciation Deduction Accumulated Depreciation 1 2 3 4 Need Help? $ $ $ Read It X X X X Watch It X X X X Master It 33.33% = 44.45% 3 14.81% = 7.41% || = $ $ $ $ X X X X $ $ $ $ X X X X $ $ $ LA $ $ Book Value X X X X X
An in-place machine with B= $115,000 was depreciated by using Modified Accelerated Cost Recovery System (MACRS) over a 3-year period. The machine was sold for $60,000 at the end of year 2 when the company decided to import the item that required the use of the machine. In year 2, gross income (GI) = $1 million and operating expenses (OE) = $500,000. Determine the tax liability in year 2 if Te= 35%. The tax liability in year 2 is determined to be $

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