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Sid Bought a New $410,000 Seven-Year Class Asset on August

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Sid bought a new $410,000 seven-year class asset on August 2, 2012.On December 2, 2012, he purchased $160,000 of used five-year class assets. Sid does take additional first-year depreciation if available.If Sid elects § 179, what is the maximum write-off for these purchases for 2012?


Definitions:

High-low Method

An approach in cost accounting to determine variable and fixed charges, based on analyzing the activity's minimum and maximum levels.

Job-Order Costing

A costing system used in situations where many different products, jobs, or services are produced each period.

Process Costing

A costing method used when essentially homogeneous products are produced on a continuous basis.

Cost Reconciliation Report

A financial report that reconciles the estimated, budgeted, or standard costs with the actual costs incurred.

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