Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tom purchases a new manufacturing machine for his

Tom purchases a new manufacturing machine for his business on April 1, 2015 for $27,000....

60.1K

Verified Solution

Question

Accounting

image
image
Tom purchases a new manufacturing machine for his business on April 1, 2015 for $27,000. The machine is depreciated under MACRS with a 7-year recovery period. This maachine was his only asset acquisition of this year. Thomas elects to expense $25,000 of the cost under Section 179. a. What is Tom's total deprciation deduction for the machine in 2015. b. Tom decides to sell his machine on October 5, 2017 for $10,000. Compute Tom's depreciation deduction for 2015 through 2017. The adjusted basis of the machine on October 5, 2017, and the gain or loss on the sale. (HINT: 2017 is only 1/2 year). Refer to the table on the right to calculate the MACRS depreciation MACRS Percentage Rates Recovery Period Recovery Year 3-Year 5-Year 7-Year 1 33.33 20.00 14.29 2 44.45 32.00 24.49 3 14.81 19.20 17.49 4 7.41 11.52 12.49 5 11.52 8.93 6 5.73 8.92 7 8.93 8 4.46 1 2 3 4 15 16 a. 17 18 Sec. 179 Expense MACRS Depreciation 2015 Total 19 20 21 b. 2015 R30 A D E G H M WY 12 13 7 8 14 15 16 a. 17 18 Sec. 179 Expense MACRS Depreciation 2015 Total 19 20 21 b. 22 23 24 2015 2016 2017 Accumulated Depreciation 25 26 27 Adjusted basis and gain/loss on the sale 28 29 30 31 32 Sale Price Adjusted Basis Cost Accumulated Depreciation Gain/Loss on sale 33

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Repeat analyses of the sulphate in ground waters using a gravimetric analysis technique yielded the following...

Statistics
Q

Biological systems are not as effective if they lack regulation, meaning the ability to regulate certain...

Medical Sciences
Q

A proton moves with a speed of 0.895c. (a) Calculate its rest energy. _____MeV (b) Calculate its...

Physics
Q

A 60-Hz, 208-V, 2 pole wye connected induction motor is rated at 15hp. The equivalent parameters are...

Electrical Engineering
Q

of law of thermodynamics A Enegy can neither be created nor be destroy B The...

Physics
Q

A 0 5 kg mass of lead is submerged in a container filled to the...

Physics
Q

6 ! Required Information [The following information applies to the questions displayed below.]...

Accounting
Q

Larkspur Inc. manufactures cycling equipment. Recently, the vice president of operations of the...

Accounting
Q

Current Attempt in Progress Wildhorse Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to...

Accounting
Q

0.371 Wolford Department Store is located in midtown Metropolis. During the past several years,...

Accounting
Q

General Journal Date Description Debit Credit 1-Dec raw materials $ 20,000...

Accounting
Q

On January 1,2025, the Pharoah Company general ledger shows Equipment \(\$ 49,100\) and Accumulated Depreciation...

Accounting