Calculate the Following Amounts

question 49

Essay

Calculate the following amounts:
a.The first year of depreciation on a residential rental building costing $100,000, purchased on November 30.
b.The first year of depreciation on an auto used 100 percent in business, costing $30,000, purchased in May 2018.(No Section 179 or bonus depreciation).
c.The second year of depreciation on a computer used exclusively for business, costing $7,000, purchased May 2017.
d.The third year of depreciation on business furniture costing $1,000, purchased in July 2016, using the half-year convention and accelerated depreciation.

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Definitions:

Divest

The process of selling off subsidiary business interests or investments.

Strategically

Refers to actions taken by a business or individual that are planned to achieve a specific long-term goal or advantage.

Spinoff

A method of divesting a business unit by setting it up as a separate company and giving its shares to stockholders in proportion to their holdings of the original firm. After the spinoff stockholders can trade the two stocks separately.

Bankruptcy Proceedings

Legal process initiated by an insolvent individual or company to receive relief from debt by reorganizing or liquidating assets.