Question
On September 1, 2015, David purchased manufacturing equipment for use in his business. The equipment cost $13,000 and has an estimated useful life and MACRS
On September 1, 2015, David purchased manufacturing equipment for use in his business. The equipment cost $13,000 and has an estimated useful life and MACRS class life of 7 years. No election to expense or use bonus depreciation is made.
a. | Calculate the amount of depreciation on the manufacturing equipment for 2014 using conventional (financial accounting, not MACRS) straight-line depreciation.
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b. | Calculate the amount of depreciation on the manufacturing equipment for 2014 using the straight-line MACRS optional method.
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c. | Calculate the amount of depreciation on the manufacturing equipment for 2014 using the accelerated MACRS method. |
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