prepare a depreciation schedule for tax purposes showing the depreciation allowance and corresponding book value each year

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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J 9* prepare a depreciation schedule for tax purposes showing the depreciation allowance and corresponding book value each year
The M&M Company purchased a new railroad track in 2018 at a cost of $ 367,000. M&M also paid $6500 to
have the tracks delivered and installed. A special software installation took 3 laborers 3 days of 8 hours work at
$36 per hour. The tracks have an annual maintenance of $12000 per year and a warranty cost of $450 per year.
The tracks have an estimated useful life of 9 years. The salvage value of the tracks at the end of useful life of 9
years will be $25000. The owner declares 150% declining for the railroad tracks.
Transcribed Image Text:The M&M Company purchased a new railroad track in 2018 at a cost of $ 367,000. M&M also paid $6500 to have the tracks delivered and installed. A special software installation took 3 laborers 3 days of 8 hours work at $36 per hour. The tracks have an annual maintenance of $12000 per year and a warranty cost of $450 per year. The tracks have an estimated useful life of 9 years. The salvage value of the tracks at the end of useful life of 9 years will be $25000. The owner declares 150% declining for the railroad tracks.
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