Accounting for depreciation on vending machines

On March 15, year 1, James Smith formed a business to rent and service vending machines.

In April of year 1, James bought 20 venting machines for $60,000; in April of year 2, he bought 20 more machines for $65,000; in June of the current year, he purchased 10 more vending machines for $35,000. All vending machines have a seven-year life and are depreciated under MACRS, compute depreciation for current

Solution Summary

The solution discusses the MACRS life of vending machines and calculates the amount of depreciation for Year 1, 2, and 3.