On August 1, 2015, David purchased manufacturing equipment for use in his business. The equipment cost $14,000 and has an estimated useful life and MACRS class life of 7 years. No election to expense or use bonus depreciation is made.
a.
Calculate the amount of depreciation on the manufacturing equipment for 2015 using conventional (financial accounting, not MACRS) straight-line depreciation.
b.
Calculate the amount of depreciation on the manufacturing equipment for 2015 using the straight-line MACRS optional method.
c.
Calculate the amount of depreciation on the manufacturing equipment for 2015 using the accelerated MACRS method.

Question

On August 1, 2015, David purchased manufacturing equipment for use in his business. The equipment cost $14,000 and has an estimated useful life and MACRS class life of 7 years. No election to expense or use bonus depreciation is made.
a.​
Calculate the amount of depreciation on the manufacturing equipment for 2015 using conventional (financial accounting, not MACRS) straight-line depreciation.
b.​
Calculate the amount of depreciation on the manufacturing equipment for 2015 using the straight-line MACRS optional method.
c.​
Calculate the amount of depreciation on the manufacturing equipment for 2015 using the accelerated MACRS method.

Quizplus · Accepted Answer

The Answer of On August 1, 2015, David purchased manufacturing equipment for use in his business. The equipment cost $14,000 and has an estimated useful life and MACRS class life of 7 years. No election to expense or use bonus depreciation is made.
a.​
Calculate the amount of depreciation on the manufacturing equipment for 2015 using conventional (financial accounting, not MACRS) straight-line depreciation.
b.​
Calculate the amount of depreciation on the manufacturing equipment for 2015 using the straight-line MACRS optional method.
c.​
Calculate the amount of depreciation on the manufacturing equipment for 2015 using the accelerated MACRS method.

On August 1, 2015, David Purchased Manufacturing Equipment for Use