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Need complete answer if u want its question given in paper dont have more information solve as well as u can Q.3 Chris Scot company
Need complete answer if u want
its question given in paper dont have more information solve as well as u can
Q.3 Chris Scot company purchased new equipment on August 10,1990 at a cost of $80,000. Useful life of this equipment was estimated at 4 years, with an estimated residual value of $5,000. For income tax purposes, this equipment is classified as "3-year property". Instructions: Compute the annual depreciation expense for each year until this equipment becomes fully depreciated under each of the depreciation method listed below. a. Straight line with depreciation for fractional years rounded to the nearest whole month. (2.5) b. Sum of the years' digits, with the half year convention. (2.5) c. 200% declining balance, with the half-year convention. (02) d. MACRS accelerated rated for "3-year property". (02) e. Is it acceptable for a corporation to follow different depreciation methods in its financial statements and its income tax returns? (03) f. What association exists between the selection method of depreciation while depreciating expensive new plant for income tax reporting and the amount of income taxes payable in the near future? Justify with reasons. (03)Step by Step Solution
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