Modified Accelerated Cost Recovery System
Not what you're looking for?
In January 20XX, JIM, purchased $350,000 of new MACRS (Modified Accelerated Cost Recovery System) 5-year property in the United States. This equipment was placed in service May 1, 20XX. JIM wants to take as much depreciation in 20XX as possible.
Calculate the depreciation for 20XX.
If JIM had been located in a qualified enterprise zone, what would be the depreciation amount?
Explain the depreciation method you used.
In addition, include the tax benefits (savings) for the first year and the present value of the total tax benefits for the entire 5-year period.
Discuss how the tax benefits and present value would change if a different method of depreciation was used.
Also, discuss when JIM would not choose to take as much depreciation as possible.
Calculations in excel...essay in word doc.
Purchase this Solution
Solution Summary
The expert examines modified accelerated cost recovery system. The response addresses the query posted in 377 words with APA references.
Solution Preview
The response addresses the query posted in 377 words with APA references
//The method of depreciation has severe implications on the amount of tax that an enterprise requires to pay to the government. In this context, in the following discussion, the deprecation method namely modified accelerated cost recovery system has been discussed.//
For the purpose of calculation of depreciation, the method used is modified accelerated cost recovery system (MACRS). As per this method, the depreciation for the preceding years is calculated at higher amount, which gives tax advantages to the enterprise (Watson, 2016). The enterprise ...
Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
Recent Feedback
- "Thank You so much! "
- "Always provide great help, I highly recommend Mr. Sharma over others, thanks again. "
- "great job. I will need another help from you. "
- "first class!"
- "Thank you for your great notes. Will you be willing to help me with one more assignment? "
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Motivation
This tests some key elements of major motivation theories.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.