8. A certain asset was purchased at a cost of $1,140,000. This company is in the
ID: 1170104 • Letter: 8
Question
8. A certain asset was purchased at a cost of $1,140,000. This company is in the 35% tax bracket. Complete the lines below:
Year MACRS % Amount of Dep Amount of Dep Difference Tax Effect
———————under MACRS under straight line
1 .3333 ______________ ________________
2 .4444 ______________ ________________ ______________ ______________
3 .1482 ______________ ________________
4 .0741 ______________
Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Year MACRS % Amount of Dep under MACRS Amount of Dep under SLM = 1140,000/4 Difference Tax Effect 1.00 0.3333 379,962.00 285,000.00 94,962.00 33,236.70 2.00 0.4444 506,616.00 285,000.00 221,616.00 77,565.60 3.00 0.1482 168,948.00 285,000.00 (116,052.00) (40,618.20) 4.00 0.0741 84,474.00 285,000.00 (200,526.00) (70,184.10) 1.0000 1,140,000.0000 1,140,000.00 - -
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.