Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

So would I do itlike thisfor this question? Reversing Rapids Co. purchases an asset for $120,941. This asset qualifies as a five-year recovery asset under

So would I do itlike thisfor this question?

Reversing Rapids Co. purchases an asset for $120,941. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $14,748.

Calculate accumulated depreciation over 4 years. Round the answer to two decimals.

120941*[0.20+0.32+0.1920+0.1152]=0.8272

12094*0.8272=10004.16

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

Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes

11th edition

9781259278617, 77861647, 1259278611, 978-0077861643

More Books

Students also viewed these Finance questions

Question

Give one advantage and one disadvantage of a digital-ramp ADC.

Answered: 1 week ago

Question

How will you proceed? mk4

Answered: 1 week ago