Question
In: Accounting
3. At the beginning of the year, Poplock began a calendar-year dog boarding business called Griff’s...
3. At the beginning of the year, Poplock began a calendar-year dog boarding business called Griff’s Palace. Poplock bought and placed in service the following assets during the year:
Asset Date Acquired Cost Basis
Computer equipment 3/23 $5,000
Dog grooming furniture 5/12 $7,000
Pickup truck 9/17 $10,000
Commercial building 10/11 $280,000
Land (one acre) 10/11 $80,000
Assuming Poplock does not elect §179 expensing or bonus depreciation, what is Poplock’s year 1 depreciation expense for each asset?
Solutions
Expert Solution
| Asset | Date Acquired | Recovery Period | Cost Basis | Rate | Depreciation expense $ | |||
| Computer equipment | 3/23 | 5 years | 5,000 | 20% | 1,000 | |||
| Dog grooming furniture | 5/12 | 7 years | 7,000 | 14.29% | 1,000 | |||
| Pickup truck | 9/17 | 5 years | 10,000 | 20.00% | 2,000 | |||
| Commercial building | 10/11 | 39 years | 280,000 | 0.535% | 1,498 | |||
| Total | 5,498 | |||||||
ekkarill92 answered 2 years agoRelated Solutions
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