Question

In: Accounting

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

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Please use Excel to solve the assignment and submit as an excel spreadsheet. Bethesda Mining Company...
Please use Excel to solve the assignment and submit as an excel spreadsheet. Bethesda Mining Company Based on a Mini Case presented in the textbook Ross, S.A., R.W. Westerfield and J. Jaffe, Corporate Finance, McGraw Hill/Irwin. Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West Virginia and Kentucky. The company operates deep mines as well as strip mines. Most of the coal mined is sold under contract, with excess production sold on the...
Two alternatives with the cash flow described below. MACRS depreciation and 5years MACRS Incremental tax rate=24%...
Two alternatives with the cash flow described below. MACRS depreciation and 5years MACRS Incremental tax rate=24% After tax MARR= 10% A B Initial cost 11,000 33,000 Uniform Annual Benefits 3,000 9,000 Salvage Value 2,000 5,000 Life(years) 5 5 Find the alternative to choiisw, after cinsidering taxes
Which of the following is true about MACRS depreciation? a. Depreciation begins in the middle of...
Which of the following is true about MACRS depreciation? a. Depreciation begins in the middle of the month in which real property is placed in service. b. Mid-quarter MACRS is required for all assets if real property is placed in service in the last quarter of the year. c. Commercial buildings are depreciated over 39 years using an accelerated method. d. Residential rental buildings are depreciated straight-line over 20 years.
1. ) Prepare a depreciation schedule for the assets in the following transactions using the straight...
1. ) Prepare a depreciation schedule for the assets in the following transactions using the straight line method of depreciation: A. Flash Enterprises purchased 3 new delivery trucks at a cost of $45,000 each. Each truck has an estimated useful life of 5 years. B. Flash needed a new forklift to be used in warehouse operations at a cost of $12,500. The old forklift was traded in for $1,500. The new forklift has an estimated useful life of 4 years....
This assignment is designed to illustrate how a spreadsheet program such as Microsoft Excel supplemented by...
This assignment is designed to illustrate how a spreadsheet program such as Microsoft Excel supplemented by PHStat can enable you to easily accomplish hypothesis tests and confidence intervals that compare two population parameters. All work should be accomplished using PHStat. You should provide all the appropriate printouts of the tests you do and the confidence intervals you create along with explanations of the meaning of your answers and business implications for each problem. The assignment should be submitted to the...
This does not provide depreciation rate, but use MACRS. I am looking for excel formula please...
This does not provide depreciation rate, but use MACRS. I am looking for excel formula please to solve. Thank you! Thomson Media is considering investing in some new equipment whose data are shown below. The equipment has a 3-year class life and will be depreciated by the MACRS depreciation system, and it will have a positive pre-tax salvage value at the end of Year 3, when the project will be closed down. Also, some new working capital will be required,...
Complete a spreadsheet (by hand or by Excel) and then determine the after-tax internal rate of...
Complete a spreadsheet (by hand or by Excel) and then determine the after-tax internal rate of return by hand (i.e. no financial calculator or Excel routine). For this problem assume a 10-year analysis period, double declining depreciation is used, 21% corporate tax rate, an initial cost of $200,000, an annual benefit of $60,000 and no salvage value but instead you must pay a disposal fee of $20,000 that your corporate accountant determined is 100% tax deductible.
Complete a spreadsheet (by hand or by Excel) and then determine the after-tax internal rate of...
Complete a spreadsheet (by hand or by Excel) and then determine the after-tax internal rate of return by hand (i.e. no financial calculator or Excel routine). For this problem assume a 7-year property, MACRS depreciation is used, 21% corporate tax rate, an initial cost of $800,000, an annual benefit of $150,000 and a salvage value of $100,000. Do not forget the recaptured depreciation.
In class, we discussed the MACRS system for tax depreciation and special elections available to taxpayers....
In class, we discussed the MACRS system for tax depreciation and special elections available to taxpayers. Explain the MACRS system, the depreciation elections available to the taxpayer, and why (why not) a taxpayer would choose to make an election in regards to tax depreciation.   Be sure to include what types of assets qualify for each election.
1- In class, we discussed the MACRS system for tax depreciation and special elections available to...
1- In class, we discussed the MACRS system for tax depreciation and special elections available to taxpayers. Explain the MACRS system, the elections available to the taxpayer, and why (why not) a taxpayer would choose to make an election in regards to tax depreciation.   Be sure to include what types of assets qualify for each election.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT