ORIE 4150/5150 Homework #5 Due March 2, 2012 1. 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
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