On January 1, 2015, Smith-Jones Company purchased office furniture for $80,000. Other data on the purchase include the following: The MACRS Depreciation table is as follows:
MACRS Depreciation as a Percentage of the Cost of the Asset Required:
a. Compute the depreciation deduction for the 2015 tax return.
b. Assume the asset is sold on April 1, 2023 for $3,000. Compute the gain/loss on disposal for both financial reporting and tax reporting.

Question

On January 1, 2015, Smith-Jones Company purchased office furniture for $80,000. Other data on the purchase include the following:  The MACRS Depreciation table is as follows:
MACRS Depreciation as a Percentage of the Cost of the Asset  Required: 
a. Compute the depreciation deduction for the 2015 tax return.
b. Assume the asset is sold on April 1, 2023 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, 2015, Smith-Jones Company purchased office furniture for $80,000. Other data on the purchase include the following:  The MACRS Depreciation table is as follows:
MACRS Depreciation as a Percentage of the Cost of the Asset  Required: 
a. Compute the depreciation deduction for the 2015 tax return.
b. Assume the asset is sold on April 1, 2023 for $3,000. Compute the gain/loss on disposal for both financial reporting and tax reporting.

On January 1, 2015, Smith-Jones Company Purchased Office Furniture for $80,000