Answered: S Depreciation Deduction Accumulated…

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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Question

Johnson Industries purchased a metal-working lathe for $32,000. This item will be used for business 90% of the time. Accountants elected to take a $11,000 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 IndustriesMACRS Depreciation Schedule—Metal-working Lathe

End of Year	Basis for Depreciation	✕	Recovery Percent	=	MACRS Depreciation Deduction	Accumulated Depreciation	Book Value
	$
1	$	✕	33.33%	=	$	$	$
2	$	✕	44.45%	=	$	$	$
3	$	✕	14.81%	=	$	$	$
4	$	✕	7.41%	=	$	$	$

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