Essay
On August 1, 2015, David purchased manufacturing equipment for use in his business. The equipment cost $14,000 and has an estimated useful life and MACRS class life of 7 years. No election to expense or use bonus depreciation is made.
a.
Calculate the amount of depreciation on the manufacturing equipment for 2015 using conventional (financial accounting, not MACRS) straight-line depreciation.
b.
Calculate the amount of depreciation on the manufacturing equipment for 2015 using the straight-line MACRS optional method.
c.
Calculate the amount of depreciation on the manufacturing equipment for 2015 using the accelerated MACRS method.
Correct Answer:
Verified
Correct Answer:
Verified
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