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Tax Depreciation Lab Assignment: Prepare an excel Spreadsheet to calculate MACRS depreciation on the following assets....
Tax Depreciation Lab Assignment: Prepare an excel Spreadsheet to calculate MACRS depreciation on the following assets. Use the MACRS tables to look up the proper % to use for depreciation each year.
Business Assets:
Date
Item Purchased Amount Bus. Use Life
Truck 2/05/17 $28,000 100% 5 yr.
Mower 2 3/08/17 12,000 100% 7 yr
Seeder 3/01/16 3,400 100% 7 yr
Equipment 6/25/16 1,595 100% 7 yr
Laptop 5/18/16 2,200 100% 5 yr.
Printer 6/01/15 900 100% 5 yr.
Copier 3/02/15 2,100 100% 5 yr.
Mower 1 3/01/14 6,000 100% 7 yr
§179 expense is elected on Mower 2 (§179 was not taken on assets purchased in prior years).
Solutions
Expert Solution
| Personal property | 179 election | MACRS Basis | Depreciation Rate | Depreciation Amount |
| Truck | 28,000 | 20.00% | 5,600.00 | |
| Mower 2 | 12,000 | |||
| Seeder | 3,400 | 24.49% | 832.66 | |
| Equipment | 1,595 | 24.49% | 390.62 | |
| Laptop | 2,200 | 32.00% | 704.00 | |
| Printer | 900 | 19.20% | 172.80 | |
| Copier | 2,100 | 19.20% | 403.20 | |
| Mower 1 | 6,000 | 12.49% | 749.40 | |
| Depreciation | 12,000.00 | 8,852.68 | ||
| Total cost recovery | 20,852.68 |
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