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Tamarisk Inc. purchased computer equipment on March 1, 2017, for $33,480. The computer equipment has a useful life of 10 years and a salvage value of $1,080. For tax purposes, the MACRS class life is 5 years. Assuming that the company uses the straight-line method for book and tax purposes, what is the depreciation expense reported in (1) the financial statements for 2017 and (2) the tax return for 2017? (Round answer to decimal places, e.g. 5,125.) (1) Depreciation expense reported in the financial statements for 2017 (2) Depreciation expense on the tax return for 2017 Assuming that the company uses the double-declining-balance method for both book and tax purposes, what is the depreciation expense reported in (1) the financial statements for 2017 and (2) the tax return for 2017? (Round answers to 0 decimal places, e.g. 5,125.) (1) Depreciation expense reported in the financial statements for 2017 (2) Depreciation expense on the tax return for 2017

          Tamarisk Inc. purchased computer equipment on March 1, 2017, for $33,480. The computer equipment has a useful life of 10 years and a salvage value of $1,080. For tax purposes, the MACRS class life is 5 years.

Assuming that the company uses the straight-line method for book and tax purposes, what is the depreciation expense reported in (1) the financial statements for 2017 and (2) the tax return for 2017? (Round answer to decimal places, e.g. 5,125.)

(1) Depreciation expense reported in the financial statements for 2017
(2) Depreciation expense on the tax return for 2017

Assuming that the company uses the double-declining-balance method for both book and tax purposes, what is the depreciation expense reported in (1) the financial statements for 2017 and (2) the tax return for 2017? (Round answers to 0 decimal places, e.g. 5,125.)

(1) Depreciation expense reported in the financial statements for 2017
(2) Depreciation expense on the tax return for 2017

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Added by Silvia V.

Calculus: Early Transcendentals

James Stewart 8th Edition

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Solved by Expert Madhur L

01/20/2023

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Tamarisk Inc. purchased computer equipment on March 1, 2017, for $33,480. The computer equipment has a useful life of 10 years and a salvage value of $1,080. For tax purposes, the MACRS class life is 5 years. Assuming that the company uses the straight-line method for book and tax purposes, what is the depreciation expense reported in (1) the financial statements for 2017 and (2) the tax return for 2017? (Round answer to decimal places, e.g. 5,125.) (1) Depreciation expense reported in the financial statements for 2017 (2) Depreciation expense on the tax return for 2017 Assuming that the company uses the double-declining-balance method for both book and tax purposes, what is the depreciation expense reported in (1) the financial statements for 2017 and (2) the tax return for 2017? (Round answers to 0 decimal places, e.g. 5,125.) (1) Depreciation expense reported in the financial statements for 2017 (2) Depreciation expense on the tax return for 2017

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00:01 Hi, in this question we are given that on march 1, 2017, a computer was purchased at a cost of computer which is equals to $33 ,480.

00:19 And the equipment has a useful life that is equals to 10 years.

00:33 Value that is equals to $1 ,080.

00:39 For the text purpose, macrs class life is 5 years.

00:51 For the first part a, assuming the company uses a straight line method.

00:58 Using straight line method for the book and text purpose we need to find the depreciation expenses for the first part that is reported in financial statement for 2017 in this case are depreciation expenses will be equals to cost of computer minus salviour value times number of years divide by useful life times number of months divide by total months in year.

02:00 Now substituting the known values here, we get depreciation expenses equal to cost of computer 33 ,480 minus selvic value 1 ,080 times number of years that is one by useful life which is 10 times number of months that are 10 as we started from march by total months which is 12 and solving this we get a final result for the depreciation expense in this case that will be equals to $2 ,700.

02:35 Now moving further to answer for the next part where we are need to find the text return for 2017 here in this case depreciation expense will be equal to cost of computer times number of years in this case by the useful life times number of months divide by total months in year and substituting the known values here, we get the depreciation expense which will be equals to 33 ,480 times number of years won by useful life in this case is 5 times number of month we consider 6 by 12.

03:28 Because for text purpose, half year is considered...

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