Asset Depreciable basis placed in service service life furniture $88,000 1/15/x0 3 years computer equipment 22,600 6/30/x1 5 years office machinery 68,000 11/1/x3 7 years manufacturing equipment 108,000 2/15/x2 10 years year ending 12/31/x3 use the MACRS...

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Accounting

Asset Depreciable basis placed in service service life
furniture $88,000 1/15/x0 3 years
computer equipment 22,600 6/30/x1 5 years
office machinery 68,000 11/1/x3 7 years
manufacturing equipment 108,000 2/15/x2 10 years
year ending 12/31/x3
use the MACRS Table
a. Calculate current year depreciation expense on thefurniture:
b. Calculate current year depreciation expense on thecomputer:
c. Calculate current year depreciation expense on the officemachine:
d. Assume the office machinery remains in service throughout thenext two calendar years. Calculate depreciation for 20X4.
e. Calculate the basis (net tax value) of the office machineryat the end of year three assuming it remains in service until thatdate:
f. Calculate current year depreciation expense on the mfg.equipment:

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3.8 Ratings (414 Votes)

Straight line depreciation is calculated by following formula Depreciable Value Scrap Value Service Life If the asset is used for a part of the year then the depreciation shall be prorated accordingly a Calculation of depreciation expense on furniture for the year ended 1231x3 Depreciable Value 88000 Depreciation Date start 115x0 Now furniture was in use for 351 days in year ended See Answer

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Asset	Depreciable basis	placed in service	service life
furniture	$88,000	1/15/x0	3 years
computer equipment	22,600	6/30/x1	5 years
office machinery	68,000	11/1/x3	7 years
manufacturing equipment	108,000	2/15/x2	10 years
year ending	12/31/x3