Question
Charles owns a sign manufacturing facility. He purchased a vinyl stretching machine on June 4, 20x1 $61,000. Charles financed 80% of the machine with a
Charles owns a sign manufacturing facility. He purchased a vinyl stretching machine on June 4, 20x1 $61,000. Charles financed 80% of the machine with a 7% 5 year loan through Chase Bank. He made a cash down payment of $12,200. The monthly Note payment is $1,207.87.
| Depreciation Rate for Recovery Period | |||||
| Year | 3-year | 5-year | 7-year | 10-year | 15-year |
| 1 | 33.33% | 20.00% | 14.29% | 10.00% | 5.00% |
What is the annual depreciation for the equipment in year 1?
- A. $8,717
- B. $6,100
- C. $20,331
- D. $12,200
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
978-0078111044
