Assuming the computer is a five-year asset, what would be the deprecation amount for the 4th year (assuming no Sec 179 or 168(k) deprecation was taken)
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Q: deprecation amount for the 4th year
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You are working in the accounting department of a mid-sized company (Bespin Tibanna Gas Systems, LLC). As a young staff, one of your first tasks is to manage the fixed assets for the company. Below is a short list of some of the assets.
Asset |
Placed in Service |
Basis (when placed into service) |
New Computer |
June 6 |
3,500 |
Assuming the computer is a five-year asset, what would be the deprecation amount for the 4th year (assuming no Sec 179 or 168(k) deprecation was taken)
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- A company owner has asked his accountant to research the photocopier equipment available from vendors, and to recommend the two best equipment alternatives. The company owner will decide on one piece of equipment topurchase. The fee charged for the accountant’s research was $500. The accountant’s report produced the following information: Photocopier (A) Photocopier (B) Initial cost, including installation $6,500 $ 6,000 Economic life 5 years 5 years Scrap value at end of economic life -0- -0- Initial training cost $ 500 $ 700 Annual maintenance $ 400 $ 300 Annual wage cost $12,500 $12,500 REQUIRED 1. Which photocopier should the company owner choose? Why? 2. The company owner requested your help in preparing the coming year company budget. Please, guide him to the best method and appropriate type from your perspective.Katie, your Accounting Manager, has asked you to calculate the depreciation for the new company car. the new car was purchased on June 1, 2018. • The purchase price was $12,600 and has useful lives of 3 years. The salvage or residual amount is 10% of the purchase price. It was estimated that the company car would be driven a total of 93,000 miles. • In year 1 the car was driven 48,900 miles, in year 2 the car was driven 35,180 miles and in year 3 the car was driven 12,300 miles. Round to the nearest whole dollar. Calculate the total depreciation expense in Years: 2018, 2019, 2020, and 2021, using the Double-Declining Balance method. HTML Editor B IUA▼囚▼工 EEEE xx 三E 国。 |次 G M ,回 11 12pt ParagraphThe company founder hires us as consultants and asks that we oversee the accounting for new equipment purchased on January 1. The founder wants to know the implications of different depreciation methods and estimates for the company's financial statements. Those statements will be used to attract financing from new investors and creditors. At the end of the equipment's first year in operation, we are given the following Tableau Dashboard. Estimated Useful Life of Assets Purchase Price & Estimated Salvage Value Building Equipment Truck $70,000 16 $60,000 $50,000 12 $40,000 $30,000 8 $20,000 4 $10,000 $0 Purchase Salvage Purchase Salvage Purchase Salvage Building Equipment Truck Price Value Price Value Price Value 20 Years
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