Jack started a newaccounting practice. He purchased $35,000 of computer equipment andplaced the equipment...Jack...

50.1K

Verified Solution

Question

Accounting

Jack started a newaccounting practice. He purchased $35,000 of computer equipment andplaced the equipment in service in May. (Here is MARCS HYdepreciation rates for 5 year property. (Year 1 -20.0%, Year 2-32.0%, Year 3 -19.2% Year 4 -11.52%, Year 5 -11.52% and Year 6% -5.76%. Unfortunately, the business was not doing well. In year 3,Jack decided to close the business. He sold the property for$10,500. What is Jack's gain or loss on the sale of the computerequipment?

Answer & Explanation Solved by verified expert

4.2 Ratings (877 Votes)

Depreciation Rate is given as per 200 declining balance method FirstYear Depreciation will be Cost X Depreciation Conversion 3500020 7000 Note Since the property does not fall into midmonth or midquarter convention the halfyear See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingJack started a newaccounting practice. He purchased $35,000 of computer equipment andplaced the equipment...Jack started a newaccounting practice. He purchased $35,000 of computer equipment andplaced the equipment in service in May. (Here is MARCS HYdepreciation rates for 5 year property. (Year 1 -20.0%, Year 2-32.0%, Year 3 -19.2% Year 4 -11.52%, Year 5 -11.52% and Year 6% -5.76%. Unfortunately, the business was not doing well. In year 3,Jack decided to close the business. He sold the property for$10,500. What is Jack's gain or loss on the sale of the computerequipment?