Kuo Corporation Uses the Following Assets in Its Business in 2018

question 38

Essay

Kuo Corporation uses the following assets in its business in 2018:
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Assume Kuo Corporation does not utilize Sec 179 expense, has not disposed of any asset since 2003, and has never expensed an asset previously. Kuo, when applicable, elected not to use bonus depreciation in past years. The equipment was sold on 9-9-18 for $4,000.
What is Kuo's 2018 depreciation expense using MACRS and for ADS?
?
$\begin{array} { l l l } &2018 \text { MACRS } &2018 \text{ADS}\\\text { Building } & \underline{\quad\quad}&\underline{\quad\quad} \\\text { Furniture } & \underline{\quad\quad}&\underline{\quad\quad}\\\text { Equipment } & \underline{\quad\quad}&\underline{\quad\quad}\\\text { Truck } & \underline{\quad\quad}&\underline{\quad\quad}\\\text { Computer }& \underline{\quad\quad}&\underline{\quad\quad} \end{array}$

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Definitions:

Contract Interest Rate

The interest rate specified in a loan or bond agreement, representing the cost of borrowing or the rate of return promised to lenders.

Troubled Debt Restructuring

A process where the terms of a debt are modified due to the debtor's financial difficulties to provide relief.

Stated Interest Rate

The interest rate that is agreed upon in the loan document, which does not account for compounding.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.