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I need help with the last two parts E and F of this question Problem #3 Bardioviertesaccioliladolcevita Ltd. bought a equipment for $650,000 on Jan.
I need help with the last two parts E and F of this question
Problem #3 Bardioviertesaccioliladolcevita Ltd. bought a equipment for $650,000 on Jan. 1, 2021. The company considered various depreciation methods for financial reporting purposes (pro-rated by month). The company estimates the equipment will have a useful life of 10-years with a residual value of $62,000. For tax purposes the asset falls into the 5-year category. Hours Estimated total hours of usage 28,000 Actual usage 2021 3,100 2,900 2,700 2022 2023 a Instructions Calculate the following: Assuming the straight line method is used: (1) The depreciation expense for the year ended Dec. 31, 2021 (2) The book value of the assets as of December 31, 2022 (3) The depreciation expense for the nine month period ending Sept. 30, 2023 (4) The gain or loss if the asset is sold on Sept. 30, 2023 $370,000 b Assuming double declining balance is used: (1) The depreciation expense for the year ended Dec. 31, 2021 (2) The book value of the assets as of December 31, 2022 (3) The depreciation expense for the nine month period ending Sept. 30, 2023 (4) The gain or loss if the asset is sold on Sept. 30, 2023 $370,000 Assuming sum of the years digits is used: (1) The depreciation expense for the year ended Dec 31, 2021 (2) The book value of the assets as of December 31, 2022 (3) The depreciation expense for the ten month period ending October 31, 2023 (4) The gain or loss if the asset is sold on Oct. 31, 2023f $370,000 d Assuming units of output is used: (1) The depreciation expense for the year ended Dec 31, 2021 (2) The book value of the assets as of December 31, 2022 (3) The depreciation expense for the ten month period ending October 31, 2023 (4) The gain or loss if the asset is sold on Oct. 31, 2023f $370,000 The tax basis (undepreciated cost) the asset as of December 31, 2023 The taxable gain or loss if the asset is sold on Dec. 31, 2023 for -------- $370,000 MACRS tax depreciation rates Asset classification Year 5-year 7-vear 1 20.00% 14.29% 2 32.00% 24.49% 3 19.20% 17.49% 4 11.52% 12.49% 5 11.52% 8.93% 6 5.76% 8.92% 7 8.93% 8 4.46%Step by Step Solution
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