Question: Please help 1. A large profitable corporation purchased a small jet plane for use by the firm's engineers. The plane cost $1,500,000. Use Tables 11-2
Please help
1.
A large profitable corporation purchased a small jet plane for use by the firm's engineers. The plane cost $1,500,000. Use Tables 11-2 and 11-3 in the text or slides. Compute the depreciation for year 2 using MACRS.
| $480,000 |
| $542,358 |
| $288,000 |
| $367,350 |
2.
An oil well is subject to a 15% depletion allowance. The gross income for one year is $550,000. The taxable income excluding depletion is $50,000. Find the allowable depletion charge for that year.
| $82,500 |
| $26,231 |
| $50,000 |
| $25,000 3. Please choose from the column Various depreciation schedules have been computed for an asset having a salvage value of $90 at the end of its recovery period. Identify the type of depreciation used in each case.
Column A [ Choose ] Double declining balance with conversion to Straight Line Straight Line MACRS SOYD 150% declining balance with conversion to Straight Line Column B [ Choose ] Double declining balance with conversion to Straight Line Straight Line MACRS SOYD 150% declining balance with conversion to Straight Line Column C [ Choose ] Double declining balance with conversion to Straight Line Straight Line MACRS SOYD 150% declining balance with conversion to Straight Line Column D [ Choose ] Double declining balance with conversion to Straight Line Straight Line MACRS SOYD 150% declining balance with conversion to Straight Line Column E [ Choose ] Double declining balance with conversion to Straight Line Straight Line MACRS SOYD 150% declining balance with conversion to Straight Line |
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