[The following information applies to the questions displayed below. DLW Corporation acquired and placed in service the following assets during the year: Asset Computer equipment Forniture Commercial building Date Acquired 2/19 4/27 10/2 Cost Basis $ 16,300 $ 22,900 $319,000 Assuming DLW does not elect $179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5) Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. What is DLW's year 3 cost recovery for each asset if DLW sells these assets on 1/15 of year 3?
[The following information applies to the questions displayed below. DLW Corporation acquired and placed in service the following assets during the year: Asset Computer equipment Forniture Commercial building Date Acquired 2/19 4/27 10/2 Cost Basis $ 16,300 $ 22,900 $319,000 Assuming DLW does not elect $179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5) Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. What is DLW's year 3 cost recovery for each asset if DLW sells these assets on 1/15 of year 3?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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[The following information applies to the questions displayed below.)
DLW Corporation acquired and placed in service the following assets during the year.
Date Acquired
2/19
Cost Basis
$16,300
$ 22,900
$319,000
4/27
10/2
Asset
Computer equipment
Furniture
Commercial building
Assuming DLW does not elect $179 expensing and elects not to use bonus depreciation, answer the following questions
(Use MACRS Jable 1. Table 2. Table 3. Table 4 and Table 5.)
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
b. What is DLW's year 3 cost recovery for each asset if DLW sells these assets on 1/15 of year 3?
Asset
Computer equipment
Furniture
Commercial building
Year 3
Cost Recovery
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