Phil owns a ranch business and uses four-wheelers to do

Assignment Help Accounting Basics

Reference no: EM13598751

Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 975 miles on the four-wheeler that he bought on January 15 for $14,800. Of the miles driven, only 200 miles was for personal use. Assume four-wheelers qualify to be depreciated according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year.

A. Calculate the allowable depreciation for year 1 (ignore the §179 expense and bonus depreciation).
depreciation expense $

B. Calculate the allowable depreciation for year 2 if total miles were 1,715 and personal use miles were 770 (ignore the §179 expense and bonus depreciation).
depreciation expense $

Reference no: EM13598751

Questions Cloud

The monthly fixed costs of the company is 35500 how many : consider the information below as part of the costs structure about any company. this company sells a cars

On january 1 2009 american eagle borrows 90000 cash by : on january 1 2009 american eagle borrows 90000 cash by signing a four-year 5 installment note. the note requires four

Lexicon inc had beginning inventory in march consisting of : lexicon inc. had beginning inventory in march consisting of 15000 units 60 percent converted and ending inventory

During 2010 ly company disposed of two different assets on : during 2010 ly company disposed of two different assets. on january 1 2010 prior to their disposal the accounts

Phil owns a ranch business and uses four-wheelers to do : phil owns a ranch business and uses four-wheelers to do much of his work. occasionally though he and his boys will go

Due to a strike in its suppliers plant andretti company is : andretti company has a single product called a dak. the company normally produces and sells 78000 daks each year at a

Home repair corphrc operates a building maintenance and : home repair corphrc operates a building maintenance and repair business. the business has three office employees- a

In addition jose incurred the following expenses before : jose purchased a delivery van for his business through an online auction. his winning bid for the van was 37500. in

What would be bobs basis in the warehouse and in the land : wanting to finalize a sale before year-end on december 29 wr outfitters sold to bob a warehouse and the land for

User Account

All Pages