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would you please mark or highlight or circile the answers? thank you A piece of construction equipment (asset class 15.0) was purchased by the Jones
would you please mark or highlight or circile the answers? thank you
A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company in 2015. The cost basis was $320,000. The plan is to use the equipment and dispose it after about 8 years of service a). Determine the MACRS-GDS and MACRS-ADS recovery periods for the equipment b) Determine the annual GDS and ADS depreciation deductions for this property. C). If the company disposes the equipment and sells it sooner in 2017, instead of 2023, what would the the GDS and ADS depreciations for that year? d). Based on (e) what are the corresponding book values under the GDS and ADS depreciations? Click the icon to view the partial listing of depreciable assets used in business Click the icon to view the GDS Recovery Rates (6) a). The GDS recovery period is years. The ADS recovery period is years b). Determine the GDS depreciation deductions for this property. (Round to the nearest dollar.) Year The GDS depreciation deductions, S 2015 2016 2017 2018 2019 2020 Determine the ADS depreciation deductions for this property. (Round to the nearest dollar.) Year 2015 The ADS depreciation deductions, 5 2016 $ 2017 2018 2019 2020 2021 C). The GDS depreciation deduction for the year 2017 would be $ . (Round to the nearest dollar.) The ADS depreciation deduction for the year 2017 would be $ . (Round to the nearest dollar.) d). The book value at end of 2017 based on GDS depreciations is $0 The book value at end of 2017 based on ADS depreciations is $] (Round to the nearest dollar.) - More Info Asset Class 00.11 00.12 00.22 00.23 00.241 00.242 00.26 01.1 10.0 13.2 13.3 15.0 223 MACRS Class Lives and Recovery Periods Descriptions of Assets Office furniture and equipment Information systems, including computers Automobiles, taxis Buses Light general purpose trucks Heavy general purpose trucks Tractor units for use over the road Agriculture Mining Production of petroleum and natural gas Petroleum refining Construction Manufacture of carnets Class Life 10 6 3 9 4 6 4 10 10 14 16 6 Recovery Periods GDS ADS 7 10 5 5 5 5 5 9 5 5 5 6 3 4 7 10 7 10 7 14 10 16 5 6 5 9 Print Done More Info -X Year 1 2 3 4 5 6 7 8 9 GDS Recovery Rates (1) for the Six Personal Property Classes Recovery Period (and Property Class) 3-year 5-year 7-year 10-year 15-year 0.3333 0.2000 0.1429 0.1000 0.0500 0.4445 0.3200 0.2449 0.1800 0.0950 0.1481 0.1920 0.1749 0.1440 0.0855 0.0741 0.1152 0.1249 0.1152 0.0770 0.1152 0.0893 0.0922 0.0693 0.0576 0.0892 0.0737 0.0623 0.0893 0.0655 0.0590 0.0446 0.0655 0.0590 0.0656 0.0591 0.0655 0.0590 0.0328 0.0591 0.0590 0.0591 0.0590 0 0591 20-year 0.0375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 0.0447 0.0447 0.0446 0.0446 0.0446 0.0446 00446 10 11 12 13 14 15 Print Done Step by Step Solution
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