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 specialdepreciation allowance of 50%.Prepare a depreciation schedule (in $) using MACRS.Round all dollar amounts to the nearest cent.Johnson IndustriesMACRS Depreciation Schedule-Metal-working LatheEnd of Year Basis for Depreciation x Recovery Percent = MACRS Depreciation Deduction Accumulated Depreciation1234Need Help?$$$Read ItXXXXWatch ItXXXXMaster It33.33%=44.45%314.81%=7.41%||=$$$$XXXX$$$$XXXX$$$LA$$Book ValueXXXXX

SOLUTION:- Business use basis= cost x percentage of asset used for business purpose…

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. End of Year Basis for Depreciation x 1 2 3 4 Need Help? $ $ $ $ Read It X X X X X x Watch It X X Johnson Industries. MACRS Depreciation Schedule-Metal-working Lathe MACRS Depreciation Deduction Recovery Percent Master It 33.33% = 44.45% = 14.81% = 7.41% = $ $ $ $ x X x x Accumulated Depreciation $ $ $ $ x X x X $ $ $ $ $ Book Value X x X X x

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. End of Year Basis for Depreciation x 1 2 3 4 Need Help? $ $ $ $ Read It X X X X X x Watch It X X Johnson Industries. MACRS Depreciation Schedule-Metal-working Lathe MACRS Depreciation Deduction Recovery Percent Master It 33.33% = 44.45% = 14.81% = 7.41% = $ $ $ $ x X x x Accumulated Depreciation $ $ $ $ x X x X $ $ $ $ $ Book Value X x X X x

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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