On July 1, Year 1, Glover Corporation purchased $80,000 of equipment. The equipment is expected to be used in the business for five years and has an estimated salvage value of $11,000. Partial MACRS tables are listed below:
Required:a)Compute the amount of depreciation that is deductible under MACRS for Year 1 and Year 2 if the equipment is classified as 5-year property.b)Compute the amount of depreciation that is deductible under MACRS for Year 1 and Year 2 if the equipment is classified as 7-year property.

Question

On July 1, Year 1, Glover Corporation purchased $80,000 of equipment. The equipment is expected to be used in the business for five years and has an estimated salvage value of $11,000. Partial MACRS tables are listed below:
  Required:a)Compute the amount of depreciation that is deductible under MACRS for Year 1 and Year 2 if the equipment is classified as 5-year property.b)Compute the amount of depreciation that is deductible under MACRS for Year 1 and Year 2 if the equipment is classified as 7-year property.

Quizplus · Accepted Answer

The Answer of On July 1, Year 1, Glover Corporation purchased $80,000 of equipment. The equipment is expected to be used in the business for five years and has an estimated salvage value of $11,000. Partial MACRS tables are listed below:
  Required:a)Compute the amount of depreciation that is deductible under MACRS for Year 1 and Year 2 if the equipment is classified as 5-year property.b)Compute the amount of depreciation that is deductible under MACRS for Year 1 and Year 2 if the equipment is classified as 7-year property.

On July 1, Year 1, Glover Corporation Purchased $80,000 of Equipment