Asked by riley rajewski on Jun 04, 2024
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The bookkeeper for the Martel Company is computing depreciation for income tax purposes, using the figures from the MACRS tables supplied by the IRS. The equipment being depreciated had a cost of $16,000 and falls under the class of equipment to be depreciated at a rate of 25% for the first year and 21.43% for the second year. The equipment was purchased and put into use during the first quarter. Compute the amount of depreciation expense for the first year.
MACRS Tables
Depreciation schedules in the Modified Accelerated Cost Recovery System allowing for faster asset depreciation in the earlier years of the asset's life.
Depreciation Expense
The allocation of the cost of a tangible asset over its useful life.
- Acquire knowledge of and execute the Modified Accelerated Cost Recovery System (MACRS) for depreciation calculations.
- Estimate annual depreciation charges for multiple types of assets.
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CM
Learning Objectives
- Acquire knowledge of and execute the Modified Accelerated Cost Recovery System (MACRS) for depreciation calculations.
- Estimate annual depreciation charges for multiple types of assets.