Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 955 miles on the four-wheeler that he bought on January 15 for $10,900. Of the miles driven, only 230 miles were for personal use. Assume four-wheelers qualify to be depreciated according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. Calculate the allowable depreciation for year 1 (ignore the §179 expense and bonus depreciation).
Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 955 miles on the four-wheeler that he bought on January 15 for $10,900. Of the miles driven, only 230 miles were for personal use. Assume four-wheelers qualify to be depreciated according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. Calculate the allowable depreciation for year 1 (ignore the §179 expense and bonus depreciation).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 955 miles on the four-wheeler that he bought on January 15 for $10,900. Of the miles driven, only 230 miles were for personal use. Assume four-wheelers qualify to be depreciated according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. Calculate the allowable depreciation for year 1 (ignore the §179 expense and bonus depreciation).
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