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On January 12, 2019, Mosley Company purchased a computer (cost, $6,800; expected life, five years; estimated salvage value, $1,100) and a lightweight van for delivery
On January 12, 2019, Mosley Company purchased a computer (cost, $6,800; expected life, five years; estimated salvage value, $1,100) and a lightweight van for delivery purposes (cost, $38,100; estimated life, seven years; estimated salvage value, $5,200). For financial accounting purposes, the company uses straight-line depreciation on all assets. (Use MACRS Table) Required:
- Compute depreciation of the computer cost for financial accounting purposes for 2019 and 2020.
- Compute cost recovery of the computer cost for income tax purposes for 2019 and 2020.
- Compute depreciation of the van cost for financial accounting purposes for 2019 and 2020.
- Compute cost recovery of the van cost for income tax purposes for 2019 and 2020.
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