Question
Way Corporation disposed of the following tangible personal property assets in the current year. Assume that the delivery truck is not a luxury auto. Calculate
Way Corporation disposed of the following tangible personal property assets in the current year. Assume that the delivery truck is not a luxury auto. Calculate Way Corporations 2020 depreciation expense (ignore 179 expense and bonus depreciation for this problem).
Asset |
Date acquired |
Date sold |
Convention | Original Basis | |
Furniture (7 year) | 5/12/16 | 7/15/20 | HY | $50,000 | |
Machinery (7 year) | 3/23/17 | 3/15/20 | MQ | $72,000 | |
Delivery truck* (5 year) | 9/17/18 | 3/13/20 | HY | $20,000 | |
Machinery (7 year) | 10/11/19 | 8/11/20 | MQ | $260,000 | |
Computer (5 year) | 10/11/20 | 12/15/20 | HY | $80,000 | |
*Used 100 percent for business. |
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