[The following information applies to the questions displayed below.] Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 765 miles on the four-wheeler that he bought on January 15 for $6,500. Of the miles driven, only 175 miles were for personal use. Assume four-wheelers qualify to be depreciated according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year. (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. a. Calculate the allowable depreciation for year 1 (ignore the $179 expense and bonus depreciation).
[The following information applies to the questions displayed below.] Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 765 miles on the four-wheeler that he bought on January 15 for $6,500. Of the miles driven, only 175 miles were for personal use. Assume four-wheelers qualify to be depreciated according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year. (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. a. Calculate the allowable depreciation for year 1 (ignore the $179 expense and bonus depreciation).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please dont provide solution in an image format thanku
![1)
[The following information applies to the questions displayed below.]
Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go
for a ride together as a family activity. During year 1, Phil put 765 miles on the four-wheeler that he bought on January 15
for $6,500. Of the miles driven, only 175 miles were for personal use. Assume four-wheelers qualify to be depreciated
according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year. (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.
a. Calculate the allowable depreciation for year 1 (ignore the $179 expense and bonus depreciation).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4cb3c828-ca20-4bb8-af7b-84ab44bada2d%2Ffa6da24c-cde6-4b92-b0a7-33589ea708f9%2F6j3t98q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1)
[The following information applies to the questions displayed below.]
Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go
for a ride together as a family activity. During year 1, Phil put 765 miles on the four-wheeler that he bought on January 15
for $6,500. Of the miles driven, only 175 miles were for personal use. Assume four-wheelers qualify to be depreciated
according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year. (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.
a. Calculate the allowable depreciation for year 1 (ignore the $179 expense and bonus depreciation).
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