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The bookkeeper for the Reilly Construction Company is computing depreciation for income tax purposes, using the figures from the MACRS tables supplied by the IRS.
The bookkeeper for the Reilly Construction Company is computing depreciation for income tax purposes, using the figures from the MACRS tables supplied by the IRS. Reilly Construction Company purchased a truck in February 2005 for $40,000. In March 2005, a second truck was purchased for $48,000. Assume that allowable depreciation for each truck is 20% for the first year and 32% for the second year.
Refer to Reilly Construction Company.Compute the total allowable cost recovery on the two trucks for the year 2005.
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