Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 2, 2021, orange corporation purchased e

On January 2, 2021, Orange Corporation purchased equipment for $300,000 with an ADS recovery period...

80.2K

Verified Solution

Question

Accounting

On January 2, 2021, Orange Corporation purchased equipment for $300,000 with an ADS recovery period of 10 years and a MACRS useful life of 7 years. Section 179 was not elected. MACRS depreciation properly claimed on the asset, including depreciation in the year of sale, totaled $79,605. The equipment was sold on July 1, 2022, for $290,000. As a result of the sale, the adjustment to taxable income needed to arrive at current E & P is:

a. No adjustment is required.

b. Increase $49,605.

c. Decrease $79,605.

d. Decrease $49,605.

Answer & Explanation Solved by verified expert
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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

44. Jellyfish are considered a. meroplankton b. kronoplankton c. cryoplankton d. holoplankton 45. Crab larvae are considered a. meroplankton b. kronoplankton c. cryoplankton d....

Biology
Q

-In essay form, discuss three adaptations plants have made to thrive in different environments. -Why is water...

Biology
Q

1. Use Excel to plot x(t) versus time for 2 periods of the motion. Use the...

Physics
Q

Volunteer Corporation reported taxable income of $470,000 from operations this year. During the year, the company...

Accounting
Q

Wages and Salaries Personal Income Taxes Payroll Taxes e g Social Security tax Income Receipts...

Basic Math
Q

Evaluate fx dx eff In arctan In are

Basic Math
Q

ABC Inc. is approached by a potential customer to...

Accounting
Q

QUESTION 1 (6 marks) Brelle Ltd is a well-established company in the construction of roads...

Accounting
Q

27. Administrative sources of the tax law, such as IRS Regulations, Revenue Rulings and Revenue...

Accounting
Q

Problem 6-8A Use the inventory turnover ratio and gross profit ratio to analyze companies (L06-7)...

Accounting
Q

11. Aeron Corp uses WA (weighted-average) method in its process costing system. Data concerning the...

Accounting
Q

Exercise 17-7 Departmental overhead rates LO P2 Textra Plastics produces parts for a variety of...

Accounting