(Answered) Question in january 20xx jim purchased 350000 of new macrs

Accounting

Question:

In January 20XX, Jim purchased $350,000 of new MACRS (Modified Accelerated Cost Recovery System) 5-year property in the United States. This equipment was placed in service May 1, 20XX.

Jim wants to take as much depreciation in 20XX as possible.

1. Calculate the depreciation for 20XX.

2. If Jim had been located in a qualified enterprise zone, what would be the depreciation amount?

3. Explain the depreciation method you used. In addition, include the tax benefits(saving) for the first year and present year value of the total tax benefits for the entire-5 year period.

Discuss how the tax benefits and present value would change if a different method of depreciation was used. Also, discuss when Jim would not choose to take as much depreciation as possible.

Note: Two papers are needed. Narrative is on word including explanation of depreciation, and depreciation and all calculations should be on Excel.

View complete question

Taxation, Accounting

Category:- Taxation
Reference No.:- M92386238
Price:- $35

Verified Expert

Priced at $70 Now at $35, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Taxation

Question 1for each of the following scenarios prepare dated

Question 1 For each of the following scenarios, prepare dated journal entries on the acquiring company's books for the investment from acquisition to disposal. Ignore income taxes. a) On March 1, 20X7, Rondeau Ltd., a pr ...

Taxation theory practice amp law assignment -question 1 -

Taxation Theory, Practice & Law Assignment - Question 1 - You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a busines ...

Taxation law amp practice assignment -part 1 -on 1 july

Taxation Law & Practice Assignment - Part 1 - On 1 July 2016 Frank Lloyd commenced business as an architect. He operated as a sole proprietor from a converted garage at the rear of his residence. Much of his work consist ...

Assignment1 section 5 of the income tax act 1967 describes

Assignment 1. Section 5 of the Income Tax Act 1967 describes the ascertainment of chargeable income. Describe the steps that are used to ascertain the chargeable income of a taxpayer. 2. Identify and briefly explain any ...

Question 1you are working as a tax consultant in mayfield

Question 1 You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a business. Your client provides the following informati ...

Taxation law assignment -elwood blues is an australian

Taxation Law Assignment - Elwood Blues is an Australian resident for tax purposes and one of your best clients. Elwood has a varied portfolio and usually has a number of interesting questions to ask about the tax implica ...

Question - in june 2016 tom had signed an agreement in

Question - In June 2016 Tom had signed an agreement in Sydney with XYZ Ltd to act as the company's plantation manager in Brunei until June 2018. At the time of signing the agreement, Tom was advised that it was possible ...

Assessment type financial activity bas statement and

Assessment Type: Financial Activity, BAS Statement and Report Task A- Record Asset Valuation 1. Read through the scenario provided. 2. Review Packet Packaging's organisations chart of accounts. 3. Using the General Journ ...

Understanding tax returns assessment - prepare tax returns

Understanding Tax Returns Assessment - Prepare tax returns for individuals To complete these activities you are required to: a) Conduct independent research and analysis of relevant Tax Law. b) Access the most up to date ...

Partnership taxable incomepartner d is a 10 percent general

Partnership Taxable Income Partner D is a 10 percent general partner in ABCD Partnership. The partnership's financial records for the current tax year reveal the following: Gross receipts from sales . . . . . . . . . . . ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Taxation Expert