Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show all work Erwin Company, a calendar year taxpayer, made only two purchases of depreciable personalty this year. The first purchase was five- year

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedplease show all work

Erwin Company, a calendar year taxpayer, made only two purchases of depreciable personalty this year. The first purchase was five- year recovery property costing $317,600, and the second purchase was seven-year recovery property costing $590,000. Use Table 7- 2 and Appendix 7-A. Required: a. Compute Erwin's first-year MACRS depreciation with respect to the personalty assuming that the first purchase occurred on February 2, and the second purchase occurred on June 18. b. Compute Erwin's first-year MACRS depreciation with respect to the personalty assuming that the first purchase occurred on February 2, and the second purchase occurred on October 13. Complete this question by entering your answers in the tabs below. Required A Required B Compute Erwin's first-year MACRS depreciation with respect to the personalty assuming that the first purchase occurred on February 2, and the second purchase occurred on June 18. (Round your final answers to the nearest whole dollar amount.) MACRS Depreciation Five-year recovery property Seven-year recovery property Erwin Company, a calendar year taxpayer, made only two purchases of depreciable personalty this year. The first purchase was five- year recovery property costing $317,600, and the second purchase was seven-year recovery property costing $590,000. Use Table 7- 2 and Appendix 7-A. Required: a. Compute Erwin's first-year MACRS depreciation with respect to the personalty assuming that the first purchase occurred on February 2, and the second purchase occurred on June 18. b. Compute Erwin's first-year MACRS depreciation with respect to the personalty assuming that the first purchase occurred on February 2, and the second purchase occurred on October 13. Complete this question by entering your answers in the tabs below. Required A Required B Compute Erwin's first-year MACRS depreciation with respect to the personalty assuming that the first purchase occurred on February 2, and the second purchase occurred on October 13. (Round your final answers to the nearest whole dollar amount.) MACRS Depreciation Five-year recovery property Seven-year recovery property (Required A Required B Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Midquarter Convention for Business Personalty Placed in Service in Fourth Quarter Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 8.33% 5.00% 3.57% 2.50% 1.25% 61.11 38.00 27.55 19.50 9.88 20.37 22.80 19.68 15.60 8.89 10.19 13.68 14.06 12.48 8.00 10.94 10.04 9.98 7.20 9.58 8.73 7.99 6.48 8.73 6.55 5.90 7.64 6.55 5.90 6.56 5.90 6.55 5.91 5.74 5.90 5.91 5.90 5.91 5.90 5.17 20-Year 0.938% 7.430 6.872 6.357 5.880 5.439 5.031 4.654 4.458 4.458 4.458 4.458 4.458 4.458 4.458 4.458 4.458 4.459 4.458 4.459 3.901 7.80 Year 1 2 3 4 5 6 7 8 9 Midquarter Convention for Business Personalty Placed in Service in Third Quarter Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 25.00% 15.00% 10.71% 7.50% 3.75% 50.00 34.00 25.51 18.50 9.63 16.67 20.40 18.22 14.80 8.66 8.33 12.24 13.02 11.84 11.30 9.30 9.47 7.02 7.06 8.85 7.58 6.31 8.86 6.55 5.90 5.53 6.55 5.90 6.56 5.91 6.55 5.90 4.10 5.91 5.90 5.91 5.90 5.91 3.69 10 11 20-Year 2.813% 7.289 6.742 6.237 5.769 5.336 4.936 4.566 4.460 4.460 4.460 4.460 4.461 4.460 4.461 4.460 4.461 4.460 4.461 4.460 2.788 12 13 14 15 16 17 18 19 20 21 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Midquarter Convention for Business Personalty Placed in Service in Second Quarter Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 41.67% 25.00% 17.85% 12.50% 6.25% 38.89 30.00 23.47 17.50 9.38 14.14 18.00 16.76 14.00 8.44 5.30 11.37 11.97 11.20 7.59 11.37 8.87 8.96 6.83 4.26 8.87 7.17 6.15 8.87 6.55 5.91 3.33 6.55 5.90 6.56 5.91 6.55 5.90 2.46 5.91 5.90 5.91 5.90 5.91 2.21 20-Year 4.688% 7.148 6.612 6.116 5.658 5.233 4.841 4.478 4.463 4.463 4.463 4.463 4.463 4.463 4.462 4.463 4.462 4.463 4.462 4.463 1.673 Appendix 7-A Midquarter Convention Tables Year 1 2 3 4 5 6 7 8.45 Midquarter Convention for Business Personalty Placed in Service in First Quarter Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 58.33% 35.00% 25.00% 17.50% 8.75% 27.78 26.00 21.43 16.50 9.13 12.35 15.60 15.31 13.20 8.21 1.54 11.01 10.93 10.56 7.39 11.01 8.75 6.65 1.38 8.74 6.76 5.99 8.75 6.55 5.90 1.09 6.55 5.91 6.56 5.90 6.55 5.91 0.82 5.90 5.91 5.90 5.91 5.90 0.74 8 9 10 11 12 13 14 15 16 17 18 19 20 21 20-Year 6.563% 7.000 6.482 5.996 5.546 5.130 4.746 4.459 4.459 4.459 4.459 4.460 4.459 4.460 4.459 4.460 4.459 4.460 4.459 4.460 0.557 TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) Year 3-Year 5-Year 15-Year 20-Year 1 33.33% 44.45 2 3 4 14.81 7.41 20.00% 32.00 19.20 11.52 11.52 5.76 Recovery Period 7-Year 10-Year Depreciation Rate 14.29% 10.00% 24.49 18.00 17.49 14.40 12.49 11.52 8.93 9.22 8.92 7.37 8.93 6.55 4.46 6.55 6.56 6.55 3.28 5 6 7 8 5.00% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 9 10 11 12 13 14 15 16 17 18 19 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 20 21

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Artificial Intelligence In Accounting Organisational And Ethical Implications

Authors: Othmar M. Lehner, Carina Knoll

1st Edition

1032055626, 9781032055626

More Books

Students also viewed these Accounting questions

Question

6.5 Identify at least 10 methods used for external recruitment.

Answered: 1 week ago

Question

6.6 Explain two strategies used to recruit nonpermanent staff.

Answered: 1 week ago