ORIE 4150/5150Homework #5Due March 2, 20121. Botwell Company purchased an asset in 2009. If the asset cost $300,000 including installation, and the asset is in the mid-year MACRS 7-year class, find the annual depreciation and book value over time for the ten years Botwell owns the asset. 2. AmSat Corp. purchased a $250,000 asset in 2007. The asset was classified in the mid-year 7-year MACRS class. Determine the gain or loss if AmSat sells the asset to JSAT Corp. in 2009 for $130,000. 3. Nancy Green purchased $280,000 in office furniture for a new legal services firm in 2003. The firm moved to a new facility in 2005, and all of the office furniture was sold to the landlord of the old building for $120,000. The furniture was acquired in a year in which the mid-year convention applied. Find the gain or loss on this transaction. .4. Speedy Transit purchases 12 railcars for its Person Mover rail system it has contracted to run at the SUNY-Fredonia college campus. The cars cost $70,000 each in 2007. The mid-year convention applies. Find the gain/loss if the railcars are sold to Penbart Co. for a total of
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