[The following information applies to the questions displayed below.]Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn’t want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.)e. The vehicle cost $92,000, and she used it 20 percent for business.There is a table below this text:| Year | Depreciation Deduction ||------|------------------------|| 2021 | || 2022 | | ## MACRS Mid-Quarter Convention Tables### OverviewThese tables provide the Modified Accelerated Cost Recovery System (MACRS) depreciation rates for properties placed in service during different quarters of the year. The rates apply to recovery periods either spanning 5 years or 7 years. The tables are organized by the quarter in which the property is placed in service.### Table 2a: First QuarterFor properties placed in service during the first quarter:| Year | 5-Year | 7-Year ||------|--------|--------|| Year 1 | 25.00% | 17.85% || Year 2 | 30.00% | 23.47% || Year 3 | 18.00% | 16.76% || Year 4 | 11.37% | 11.97% || Year 5 | 11.37% | 8.87% || Year 6 | 4.26% | 8.87% || Year 7 | | 8.87% || Year 8 | | 3.34% |### Table 2b: Second QuarterFor properties placed in service during the second quarter:| Year | 5-Year | 7-Year ||------|--------|--------|| Year 1 | 15.00% | 10.71% || Year 2 | 34.00% | 25.51% || Year 3 | 20.40% | 18.22% || Year 4 | 12.24% | 13.02% || Year 5 | 11.30% | 9.30% || Year 6 | 7.06% | 8.85% || Year 7 | | 8.86% || Year 8 | | 5.53% |### Table 2c: Third QuarterFor properties placed in service during the third quarter:| Year | 5-Year | 7-Year ||--------|--------|--------|| Year 1 | 5.00% | 3.57% || Year 2 | 38.00% | 27.55% || Year 3 | 22.80% | 19.68% ||

Depreciation refers to the amount by which is charged on fixed assets and by which the asset value…

[The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including $179 expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) e. The vehicle cost $92,000, and she used it 20 percent for business. Depreciation deduction Year 2021 2022

[The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including $179 expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) e. The vehicle cost $92,000, and she used it 20 percent for business. Depreciation deduction Year 2021 2022

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter5A: Depreciation Methods

Section: Chapter Questions

Problem 4SEB: MODIFIED ACCELERATED COST RECOVERY SYSTEM Using the information given in Exercise 5Apx-1B and the...

See similar textbooks

Related questions

Q: Rawlings purchased an automobile to be used exclusively in her unincorporated business. The cost of…

A: Depreciation refers to the fall in the book value of an asset each year. Depreciable amount is…

Q: During 2020, William purchases the following capital assets for use in his catering business: New…

A: Depreciation: The word "depreciation" refers to an accounting procedure that is used to spread the…

Q: Anne Smith acquired her house in 2012 for $150,000 and her cottage in 2016 for $100,000. Due to a…

A: It is the increase or decrease in the value of an asset at a given date or time in comparison to its…

Q: Required information [The following information applies to the questions displayed below] Lina…

A: Depreciation refers to the type of operating expenses that occur due to a decrease in the value of…

Q: Andre acquired a computer on March 3, 2022, for $25,400. He elects the straight-line method for cost…

A: To calculate Andre's cost recovery deduction for the computer for tax years 2022 and 2023, we need…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…

Q: Alexa owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in…

A: Gross rental yield is the term used to describe the annual rental income from the leased property.…

Q: Required information [The following information applies to the questions displayed below] Lina…

A: The Modified Accelerated Cost Recovery System (MACRS) has been developed by the Internal Revenue…

Q: In 2016, José purchased a house for $325,000 ($300,000 relates to thehouse; $25,000 relates to the…

A: Cost recovery refers to a company's capacity to recoup or recover the cost of its investments. It is…

Q: Ibrahim purchased a house in 2019 and rented it out the entire time he owned it. His adjusted basis…

A: As per IRS, there is a capital gain on the sale of a depreciable asset or property that was held or…

Q: ses a rental house on July 2

A: Generally, depreciation of assets has to be calculated and it will reduce the cost of assets. Assets…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Depreciation deduction refers to the tax benefit that allows businesses and individuals to deduct a…

Q: Mike owns two residential rental properties. Both properties are in a separate Class 1.

A: Solution: All amounts are in $ UCC = Undepreciated Capital Cost Part 1 : Property A = 842,000 x 4% =…

Q: During 2020, William purchases the following capital assets for use in his catering business: New…

A: Answer:- Depreciation meaning:- An asset loses value over time as a result of use, damage etc.…

Q: On February 2, 2020, Alexandra purchases a personal computer. The computer cost $4,520. Alexandra…

A: Depreciation in taxation: Depreciation is a concept that is used to write off the cost of an item…

Question

## MACRS Mid-Quarter Convention Tables

### Overview
These tables provide the Modified Accelerated Cost Recovery System (MACRS) depreciation rates for properties placed in service during different quarters of the year. The rates apply to recovery periods either spanning 5 years or 7 years. The tables are organized by the quarter in which the property is placed in service.

### Table 2a: First Quarter
For properties placed in service during the first quarter:

| Year | 5-Year | 7-Year |
|------|--------|--------|
| Year 1 | 25.00% | 17.85% |
| Year 2 | 30.00% | 23.47% |
| Year 3 | 18.00% | 16.76% |
| Year 4 | 11.37% | 11.97% |
| Year 5 | 11.37% | 8.87% |
| Year 6 | 4.26% | 8.87% |
| Year 7 | | 8.87% |
| Year 8 | | 3.34% |

### Table 2b: Second Quarter
For properties placed in service during the second quarter:

| Year | 5-Year | 7-Year |
|------|--------|--------|
| Year 1 | 15.00% | 10.71% |
| Year 2 | 34.00% | 25.51% |
| Year 3 | 20.40% | 18.22% |
| Year 4 | 12.24% | 13.02% |
| Year 5 | 11.30% | 9.30% |
| Year 6 | 7.06% | 8.85% |
| Year 7 | | 8.86% |
| Year 8 | | 5.53% |

### Table 2c: Third Quarter
For properties placed in service during the third quarter:

| Year | 5-Year | 7-Year |
|--------|--------|--------|
| Year 1 | 5.00% | 3.57% |
| Year 2 | 38.00% | 27.55% |
| Year 3 | 22.80% | 19.68% |
|

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which statement below is correct? a. Real property is depreciated using the half-year convention. b. Residential real estate is depreciated over a 39-year life. c. One-half month of depreciation is taken for the month real property is disposed of. d. Salvage value is considered in MACRS depreciation.
What are all the years of the depreciation “schedule" (i.e., percentages by year) for the Modified Accelerated Cost Recovery System (MACRS) 3-year General Depreciation System (GDS) approach with the half-year convention?
I have included the question and answer I just need to know how to get the answer. Chart attached. Find the depreciation for the indicated year using MACRS cost-recovery rates for the properties placed in service at midyear. Round dollar amounts to the nearest cent. Property Class: 3-year Depreciation year: 3 Cost of property: $97,700 $14,469.37 - answer
Find the depreciation for the fourth year using MACRS cost-recovery rates for the property placed in service at midyear. The property is a 3-year property and was purchased for $90,981. MACRS Table Depreciation rate for recovery period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 33.33 % 20.00 % 14.29 % 10.00 % 5.00 % 3.750 % 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462…
Using MACRS, what is the depreciation for the first year on furniture costing $12,000? (Use Table 17.4 and Table 17.5.) (Round your answer to the nearest cent.) *******TABLES ATTACHED************ Depreciation for the first year
MODIFIED ACCELERATED COST RECOVERY SYSTEM Using the information given in Exercise 5Apx-1B and the rates shown in Figure 5A-4, prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the Modified Accelerated Cost Recovery System. For tax purposes, assume that the computer has a useful life of five years. (The IRS schedule will spread depreciation over six years.)
Requirement 1. For each depreciation method, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value for each year of the asset's life. For the units of production method, round depreciation per unit to three decimal places. Before completing the straight-line depreciation schedule, calculate the straight-line depreciation rate. One year Useful life (SL) Depreciation rate - X 1 More Info - X Requirements Complete the Straight-Line Depreciation Schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022. On January 4, 2018, Bailey Enterprises, Inc., paid $205,600 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $1,000 for transportation charges, $100 for insurance for the equipment while in transit, $10,500 sales tax, and $2,800 for a special which to place the equipment in the plant.…
The mid-month convention applies to...
Modified Accelerated Cost Recovery System An example of a depreciation schedule under the Modified Accelerated Cost Recovery System of depreciation is shown. The Internal Revenue Service (IRS) classifies various assets according to useful life and sets depreciation rates for each year of the asset’s life. This asset has a five year life. The MACRS rates are shown in the schedule. This example is for an asset with a cost of $40,000 and a salvage value of $4,000. MODIFIED ACCELERATED COST RECOVERY SYSTEM Year Cost × Rate = DepreciationExpense AccumulatedDepreciation(End of Year) Book Value(End of Year) 1 $40,000 20.00% $8,000 $8,000 $32,000 2 40,000 32.00% 12,800 20,800 19,200 3 40,000 19.20% 7,680 28,480 11,520 4 40,000 11.52% 4,608 33,088 6,912 5 40,000 11.52% 4,608 37,696 2,304 6 40,000 5.76% 2,304 40,000 0 Prepare a depreciation schedule showing the depreciation…
Modified Accelerated Cost Recovery System An example of a depreciation schedule under the Modified Accelerated Cost Recovery System of depreciation is shown. The Internal Revenue Service (IRS) classifies various assets according to useful life and sets depreciation rates for each year of the asset’s life. This asset has a five year life. The MACRS rates are shown in the schedule. This example is for an asset with a cost of $40,000 and a salvage value of $4,000. MODIFIED ACCELERATED COST RECOVERY SYSTEM Year Cost × Rate = DepreciationExpense AccumulatedDepreciation(End of Year) Book Value(End of Year) 1 $40,000 20.00% $8,000 $8,000 $32,000 2 40,000 32.00% 12,800 20,800 19,200 3 40,000 19.20% 7,680 28,480 11,520 4 40,000 11.52% 4,608 33,088 6,912 5 40,000 11.52% 4,608 37,696 2,304 6 40,000 5.76% 2,304 40,000 0 Prepare a depreciation schedule showing the depreciation…
Modified Accelerated Cost Recovery System An example of a depreciation schedule under the Modified Accelerated Cost Recovery System of depreciation is shown. The Internal Revenue Service (IRS) classifies various assets according to useful life and sets depreciation rates for each year of the asset’s life. This asset has a five year life. The MACRS rates are shown in the schedule. This example is for an asset with a cost of $40,000 and a salvage value of $4,000. MODIFIED ACCELERATED COST RECOVERY SYSTEM Year Cost × Rate = Depreciation Expense AccumulatedDepreciation(End of Year) Book Value(End of Year) 1 $40,000 20.00% $8,000 $8,000 $32,000 2 40,000 32.00% 12,800 20,800 19,200 3 40,000 19.20% 7,680 28,480 11,520 4 40,000 11.52% 4,608 33,088 6,912 5 40,000 11.52% 4,608 37,696 2,304 6 40,000 5.76% 2,304 40,000 0 Prepare a depreciation schedule showing the…
Please help