Johnson Industries purchased a metal-working lathe for $38,000. This item will be used for business 90% of the time. Accountants elected to take a $17,000 section 179 deduction and utilize the special depreciation allowance of 50%. Prepare a depreciation schedule using MACRS. Round all dollar amounts to the nearest cent. Johnson Industries MACRS Depreciation Schedule-Metal-working Lathe End of Year Basis for Depreciation Recovery Percent MACRS Depreciation Deduction Accumulated Depreciation Book Value 1 2 3 4 X X X 33.33% = 44.45% 14.81% 7.41%

Johnson Industries purchased a metal-working lathe for $38,000. This item will be used for business 90% of the time. Accountants elected to take a $17,000 section 179 deduction and utilize the special depreciation allowance of 50%. Prepare a depreciation schedule using MACRS. Round all dollar amounts to the nearest cent. Johnson Industries MACRS Depreciation Schedule-Metal-working Lathe End of Year Basis for Depreciation Recovery Percent MACRS Depreciation Deduction Accumulated Depreciation Book Value 1 2 3 4 X X X 33.33% = 44.45% 14.81% 7.41%

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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