Way Corporation disposed of the following tangible personal property assets in the current year. Date Date Original Asset Acquired Sold Convention Basis Furniture (7-year) 5/12/16 7/15/20 HY $ 60,000 Machinery (7-year) 3/23/17 3/15/20 MQ 77,000 Delivery truck* (5-year) 9/17/18 3/13/20 HY 24,000 Machinery (7-year) 10/11/19 8/11/20 MQ 275,200 Computer (5-year) 10/11/20 12/15/20 HY 84,000 *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation’s 2020 depreciation deduction (ignore §179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.) a. Depreciation Deduction?
Way Corporation disposed of the following tangible personal property assets in the current year. Date Date Original Asset Acquired Sold Convention Basis Furniture (7-year) 5/12/16 7/15/20 HY $ 60,000 Machinery (7-year) 3/23/17 3/15/20 MQ 77,000 Delivery truck* (5-year) 9/17/18 3/13/20 HY 24,000 Machinery (7-year) 10/11/19 8/11/20 MQ 275,200 Computer (5-year) 10/11/20 12/15/20 HY 84,000 *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation’s 2020 depreciation deduction (ignore §179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.) a. Depreciation Deduction?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Way Corporation disposed of the following tangible personal property assets in the current year.
| Date | Date | Original | |||
| Asset | Acquired | Sold | Convention | Basis | |
| Furniture (7-year) | 5/12/16 | 7/15/20 | HY | $ | 60,000 |
| Machinery (7-year) | 3/23/17 | 3/15/20 | MQ | 77,000 | |
| Delivery truck* (5-year) | 9/17/18 | 3/13/20 | HY | 24,000 | |
| Machinery (7-year) | 10/11/19 | 8/11/20 | MQ | 275,200 | |
| Computer (5-year) | 10/11/20 | 12/15/20 | HY | 84,000 | |
*Used 100 percent for business.
Assume that the delivery truck is not a luxury auto. Calculate Way Corporation’s 2020
a. Depreciation Deduction?
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