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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

ekkarill92 answered 1 year ago
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