On January 1, 2013, Smith-Jones Company purchased office furniture for $80,000. Other data on the purchase include the following:
Required: a.Compute the depreciation deduction for the 2013 tax return.
b.Assume the asset is sold on April 1, 2021 for $3,000. Compute the gain/loss on disposal for both financial reporting and tax reporting.

Question

On January 1, 2013, Smith-Jones Company purchased office furniture for $80,000. Other data on the purchase include the following: 
Required: a.Compute the depreciation deduction for the 2013 tax return.
b.Assume the asset is sold on April 1, 2021 for $3,000. Compute the gain/loss on disposal for both financial reporting and tax reporting.

Quizplus · Accepted Answer

The Answer of On January 1, 2013, Smith-Jones Company purchased office furniture for $80,000. Other data on the purchase include the following: 
Required: a.Compute the depreciation deduction for the 2013 tax return.
b.Assume the asset is sold on April 1, 2021 for $3,000. Compute the gain/loss on disposal for both financial reporting and tax reporting.

On January 1, 2013, Smith-Jones Company Purchased Office Furniture for $80,000