Required Information(The following information applies to the questions displeyed belowKarane Enterprises, a calendar-year manufacturer besed in College Station, Texas, began business in 2020.in the process of setting up the business, Karane has acquired verlous types of assets. Below is a list ofassets acquired during 2020:DatePlaced inServiceOffice furnitures 280,000 02/03/20201,586, 000 07/22/2020AssetCostMachineryUsed deliverytruck66,000 08/17/2020"Not considered a luxury automobile.During 2020, Karane was very successful (and had no 8179 imitations) and decided to acquire more assetsIn 2021 to increase Its production capacity. These are the assets acquired during 202tDatePlaced inServiceAssetComputers andinformation systemLuxury autotAssembly equipmentStorage buildingCost$ 426,008 03/31/202186,500 05/26/20211,330,000 e8/15/202180e,eee 11/13/2021fused 100% for business purposes.Karane generated taxable income in 2021 of $1,765,000 for purposes of computing the S179 expenseimitation. (Use MACRS Table 1, Table 2. Table 3, Table 4, Table 5, and Exxhibit 10-10) (Leave no answerblank. Enter zero If applicable. Input all the values as positive numbers)Required:C. Compute the maximum 2021 depreciation deductions, including S179 expense, but now assume that Karane wouldke to take bonus depreciation.Section179ExpenseCurrentMACRSDepreciation DeductionTotal CostRecoveryDescriptionMACRSBasisCostBonus2020 AssetsOffice FurnitureMachineryUsed Delivery Truck2021 AssetsComputers andInformation SystemLuxury AutoAssembly EquipmentStorage BuldingTotal

Under section 179, businesses are eligible for deducting the expenses which are related to…

Required: Compute the maximum 2021 depreciation deductions, including $179 expense, but now assume that Karane wa ke to take bonus depreciation. Description 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total Cost S Section 179 Expense 0$ Bonus MACRS Basis 0$ 05 Current MACRS Depreciation Deduction Total Cost Recovery 0$ S 0 0 0 0000

Required: Compute the maximum 2021 depreciation deductions, including $179 expense, but now assume that Karane wa ke to take bonus depreciation. Description 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total Cost S Section 179 Expense 0$ Bonus MACRS Basis 0$ 05 Current MACRS Depreciation Deduction Total Cost Recovery 0$ S 0 0 0 0000

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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D1.
Need help with question B & C Thanks
Please find the depreciation expenses thanku
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How do I find the car’s depreciation?
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Required B & Required C please
The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm. Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining- balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/2021 year-end financial statements for Company B: Income Statement Depreciation expense $10,000 Balance Sheet Assets: Plant and equipment, at cost Less: Accumulated depreciation Net $ 200,000 (40,000) $ 160,000 You also determine that all of the assets constituting the plant and equipment of Company B were acquired at the same time, and that all of the $200,000 represents depreciable assets. Also, all of the depreciable assets have the same useful life and residual values are zero. Required: 1. In order to compare…
Computing Partial Period Depreciation under Multiple Depreciation Methods Compute depreciation expense for 2021 for each asset #1, #2, #3, and #4. Note: Do not round until your final answer. Round your final answer to the nearest whole dollar. Acquisition Acquisition Useful Salvage 2021 Depreciation Value Asset Date Depreciation Method Cost Life Expense #1 Jan. 1, 2020 Straight-line $4,000 4 years $200 $ 950 v #2 Aug. 30, 2020 Double-declining-balance 5,800 8 years 400 $ 1,125 x #3 Feb. 1, 2021 Sum-of-the-years'-digits 7,200 4 years 320 $ 1,147 x #4 Jul. 31, 2021 Straight-line 13,520 8 years 0 $
rmn.3
Calculate the depreciation expense with these methods 1- straight line method 2019 2- double declining method 2020 3- Sum of the years digits for 2020 A house cost $800,000 on April 1,2019 the salvage value is $80,000 and its expected life is 8 years.
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