Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with this accounting question, Thank you Required information [T he following information applies to the questions displayed below] At the beginning of

I need help with this accounting question, Thank you

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Required information [T he following information applies to the questions displayed below] At the beginning of the current year. Poplock began a calendar-year dog boarding business called Griff's Palace. Poplock bought and placed in service the following assets during the year: Date Coat: Asset Acquired Basis Computer equipment 3 I 23 S a , 800 Dog-grooming furniture 5/12 10 , 300 Pickup truck 9/17 10,000 Commercial building 10/11 308,000 Land (one acre) 10/11 118,000 ' Assuming Poplock does not elect 179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5.) (Do not round intermediate calculations. Round your nal answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) b. What is Poplock's year 2 depreciation deduction for each asset? Computer equipment Dog grooming furniture Land Total Pickup truck Commercial building Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 8.93 6.55 5.90 4.888 Year 8 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 5.90 4.461 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 .38 8.74 Year 7 8.75 Year 8 1.09 TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 1.26 3.87 Year 7 8.87 Year 8 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 .30 Year 6 7.06 .85 Year 7 8.86 Year 8 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 3.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month Month 10 11 12 Year 1 3.485% 3.182% 2.879% 2.5769% 2.273% 1.970% .667% 1.364% 1.061% 0.758% 0.455% 0.152% Year 2-9 3.63 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.63 3.636 Year 10 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 13 3.636 3.636 3.63 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 Year 14 3.637 3.637 3.637 3.637 3.63 3.637 3.636 3.636 3.636 3.63 3.636 Year 15 3.63 3.636 3.636 3.636 3.636 3.63 3.637 3.637 3.637 3.637 3.63 3.637 Year 16 3.63 3.637 3.637 3.637 3.637 3.63 3.636 3.636 3.636 3.636 3.636 Year 17 3.636 3.636 3.63 3.636 3.636 3.63 3.637 3.637 3.637 3.637 3.63' 3.637 Year 18 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 20 3.637 3.637 3.637 3.637 3.637 3.637 3.636 .636 3.636 3.636 3.636 3.636 Year 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.63 3.636 3.636 3.636 3.636 3.636 3.636 Year 23 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 24 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 25 3.636 .636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 26 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 Year 27 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.63' 3.637 Year 28 1.97 2.27 2.576 2.879 3.182 3.48 3.636 3.636 3.636 3.63 3.636 Year 29 0.152 0.455 0.758 1.061 1.364 1.667TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line-31.5 Years (for assets placed in service before May 13, 1993) Month Property Placed in Service Month 2 Month 3 Month 4 Month 5 Month 6 Month 8 Month 9 Month 10 Month 11 Month 12 Year 3.042% 2.778% 2.513% 2.249% 1.984% 1.455% 1.190% 0.926% 0.661% 0.397% 0.132% 3.17 3.175 3.175 3.175 3.175 3.175 Year 8 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 3.175 3.175 Year 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 10 3.175 3.174 3.175 3.175 3.174 3.174 3.174 3.174 3.175 3.174 3.175 3.174 3.17 3.174 3.174 3.175 3.174 3.175 Year 12 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 13 3.174 3.174 3.174 3.174 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 Year 15 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 Year 16 3.175 3.174 3.175 3.175 3.174 3.174 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 Year 18 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.175 3.174 Year 19 3.174 3.174 3.174 3.174 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 21 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 22 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.115 3.174 3.175 3.174 3.175 Year 24 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.175 3.174 Year 25 3.174 3.175 3.174 3.174 3.174 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 27 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 Year 28 3.175 3.174 3.175 3.175 3.175 3.174 3.174 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 Year 30 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 Year 31 3.174 3.174 3.174 3.175 3.175 3.174 3.175 1.720 1.984 2.513 2.778 3.042 3.175 3.174 3.175 3.174 3.175 3.174 Year 33 0.132 0.397 1.455TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line-39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 2.461% 2.247% 2.033% 1.819% 1.605% 1.391% 1.177% 0.963% 0.749% 0.535% 0.321% 0.107% Year 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 2.461

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-12

Authors: Douglas McQuaig

10th Edition

1439038783, 978-1439038789

More Books

Students also viewed these Accounting questions

Question

What applied experiences do you have? (For Applied Programs Only)

Answered: 1 week ago