Financial and Operational Effects IP.docx - Running head TAXES BUSINESS STRATEGY 1 Financial and Operational Effects Chrisie Jefferson ACCT618-1903B-01

Financial and Operational Effects IP.docx - Running head...

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Running head: TAXES & BUSINESS STRATEGY 1 Financial and Operational Effects Chrisie Jefferson ACCT618-1903B-01 September 4, 2019 Dr. Ralph Palumbo
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TAXES & BUSINESS STRATEGY 2 Abstract In January 2015, Jefferson Industrial purchased $350,000 of new MACRS, which is an acronym for Modified Accelerated Cost Recovery System 5 year property that is in the United States. Jefferson Industrial did not use the equipment until May 1, 2018 and given this information, Jefferson Industrial Machine Inc. will use it to take as much depreciation in 2015 as they possibly can. In order for Jefferson Industrial Machine, Inc. to take the depreciation of the equipment, they will first have to calculate the depreciation for 2018. The depreciation method that we will use to calculate the depreciation of the equipment. Further I will explain what the depreciation amount would be if Jefferson Industrial Machine, Inc. was located in a qualified enterprise zone. The tax benefits or savings for the first year and the present value of the total tax benefits for the entire 5 year period will be included in further discussion. Jefferson Industrial Machine, Inc. will need to know when not to take as much depreciation as possible. There are different depreciation methods that can be used to change the tax benefits or savings and present value.
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TAXES & BUSINESS STRATEGY 3 Financial and Operational Effects Jefferson Industrial Machine Inc. will need to calculate the depreciation that they can take, from the 5 year property that they recently purchased over in the United States. The
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  • Spring '16
  • RalphPalumbo
  • Jefferson Industrial, year property

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