Accounting for depreciation on vending machines
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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
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Solution Preview
There are two issues with this problem:
1. Whether to use a five year life or a seven for depreciation. Vending machines don't have a specified class life unless ...
Solution Summary
The solution discusses the MACRS life of vending machines and calculates the amount of depreciation for Year 1, 2, and 3.
$2.49