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The client depends on his accountant to provide a journal entry for the annual depreciation expense. They have adopted a policy of treating book depreciation
The client depends on his accountant to provide a journal entry for the annual depreciation expense. They have adopted a policy of treating book depreciation equal to tax depreciation. Depreciation expense for the year will include:
a. Depreciation on assets placed in service prior to 2014 is: $86,769
b. Maximize Sec. 179 expense on assets placed in service in 2014.
c. Take Sec. 168(k) 50% Bonus on new equipment if applicable.
Date | Num | Memo | Account | Debit | Credit |
12/31/2014 | 2014 Adjustment | to record 2014 depreciation on assets placed in service prior to 2014 | 62400 Depreciation Expense | ||
to record 2014 depreciation on assets placed in service prior to 2014 | 17000 Accumulated Depreciation | ||||
to record Sec. 179 expense | 62400 Depreciation Expense | ||||
to record Sec. 179 expense | 17000 Accumulated Depreciation | ||||
to record depreciation on assets placed in service in 2014 | 62400 Depreciation Expense | ||||
to record depreciation on assets placed in service in 2014 | 17000 Accumulated Depreciation |
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