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Could you please help me figure this out and show work so I understand how you got that answer? Thanks so much! Exercise 11-25 Pronghorn
Could you please help me figure this out and show work so I understand how you got that answer? Thanks so much!
Exercise 11-25 Pronghorn Enterprises purchased a delivery truck on January 1, 2017, at a cost of $29,700. The truck has a useful life of 7 years with an estimated salvage value of $6,600. The straight-line method is used for book purposes. For tax purposes, the truck, having an MACRS class life of 7 years, is classified as 5-year property; the optional MACRS tax rate tables are used to compute depreciation. In addition, assume that for 2017 and 2018 the company has revenues of $220,000 and operating expenses (excluding depreciation) of $143,000. MACRS Depreciation Rates by Class of Property Recovery 3-year 5-year 7-year 10-year 15-year 20-year 1200% DB) (2009% DB) (200% DB) 50% DB) 3.750 20.00 4.29 0.00 5.00 7.219 44.45 32.00 24.49 18.00 9.50 14.40 19.20 14,81 17.49 8,55 6.677 11.52" 11.52 12.49 7.70 11.52 9.22 6.93 5.713 8.93. 5.285 5.76 8.92 7.37 6.23 5.90 4.888 8,93 6.55 4.522 4.46 6.55 6.56 5.91 4.462" 10 5.90 4.461 5.91 4.462 4.461 12 5.90 4.462 13 5.91 14 5.90 4.461 15 5.91 4.462 4.461 16 2.95 4.462 17 18 4.461 19 4.462 4.461 2.231 'Switchover to straight-lino doprociationStep by Step Solution
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