Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer for year 1,2,3 and 4 Depreciation In early 2015, Sosa Enterprises purchased a new machine for $10,700 to make cork stoppers for wine

please answer for year 1,2,3 and 4 image text in transcribed
image text in transcribed
Depreciation In early 2015, Sosa Enterprises purchased a new machine for $10,700 to make cork stoppers for wine bottles. The machine has a 3-year recovery period and is expected to have a salvage value of $2,140. Develop a depreciation schedule for this asset using the MACRS depreciation percentages in the table i Complete the depreciation schedule for the asset below: (Round the percentage to the nearest integer and the depreciation to the nearest dollar.) Year Depreciation Schedule Cost Percentage (1) (2) $10,700 Depreciation (1) (2) 10 years 3 Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 15% 19% 18% 14% 4 7% 12% 12% 12% 12% 9% 9% 6 5% 9% 8% 7 9% 7% 8 4% 6% 9 6% 10 6% 11 4% Totals 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Financial Accounting For Executives And MBAs

Authors: Wallace, Simko, Ferris

4th Edition

1618531980, 9781618531988

Students also viewed these Finance questions

Question

Define expectancy theory.

Answered: 1 week ago