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SHOW IN EXCEL PLS. I just need to fact check my answer The recently enacted tax law (2018) allows companies to use immediate write of equipment purchases or what they call "bonus" depreciation. This "bonus" depreciation phases out over time and is

SHOW IN EXCEL PLS. I just need to fact check my answer The recently enacted tax law (2018) allows companies to use immediate write of equipment purchases or what they call "bonus" depreciation. This "bonus" depreciation phases out over time and is

FINANCIAL ACCOUNTING
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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SHOW IN EXCEL PLS. I just need to fact check my answer The recently enacted tax law (2018) allows companies to use immediate write of equipment purchases or what they call "bonus" depreciation. This "bonus" depreciation phases out over time and is eliminated by 2025. Assume that we are now in 2025, and the tax law has reverted to the MACRS system discussed in chapter 8 (which is the way the law is written). You place the following equipment into service in the following years with the following tax lives: Year placed life Таx Cost Into service Computer 2025 3 year Car $46,000 2026 5 year Shelves $65,000 2027 7 $98,000 year What is the total depreciation expense allowed by the IRS for all three pieces of equipment for tax years 2027?
Transcribed Image Text:SHOW IN EXCEL PLS. I just need to fact check my answer The recently enacted tax law (2018) allows companies to use immediate write of equipment purchases or what they call "bonus" depreciation. This "bonus" depreciation phases out over time and is eliminated by 2025. Assume that we are now in 2025, and the tax law has reverted to the MACRS system discussed in chapter 8 (which is the way the law is written). You place the following equipment into service in the following years with the following tax lives: Year placed life Таx Cost Into service Computer 2025 3 year Car $46,000 2026 5 year Shelves $65,000 2027 7 $98,000 year What is the total depreciation expense allowed by the IRS for all three pieces of equipment for tax years 2027?
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