Determine the Largest Possible MACRS Cost Recovery Deduction for 2013

question 43

Essay

Determine the largest possible MACRS cost recovery deduction for 2013 on the following assets,which were purchased for use in Greg's Accounting Services on July 1,2013.Greg elects out of bonus depreciation deduction.
$\begin{array}{lc}\text { Assets } & \text { Cost } \\\text { Office equipment } & \$ 486,000 \\\text { Computer and printers } & 40,000 \\\text { Office building (exclusive of land) } & 150,000\end{array}$
a.Office equipment depreciation for 2013:MACRS recovery period__________Depreciable basis__________Depreciation__________
b.Computer and printer depreciation for 2013:MACRS recovery period__________Depreciable basis__________Depreciation__________
c.Office building depreciation for 2013:MACRS Class Life__________Depreciable basis__________Depreciation__________
d.Assume the office equipment is sold on December 2, 2015. Determine the cost recovery deduction for the year 2015.Depreciation:
e.Assume the building is sold on December 2, 2015. Determine the cost recovery deduction for the year 2015.Depreciation:

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Definitions:

Organizational Variables

Factors within a company that influence its operations, culture, and performance, including leadership, management practices, and organizational structure.

Contextual

Pertaining to the circumstances or environment in which something exists or occurs.

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Relating to the physical or organizational arrangement or construction of something.

High Involvement Systems

Organizational strategies designed to include employees in decision-making processes, enhancing commitment, and improving performance.