Chrysler Corporation purchased special tools to be used in the ...

[arivle123]

Chrysler Corporation purchased special tools to be used in the assembly process of the Mustang in the amount of 7,200,000. The residual value after 3 years was estimated to be 900,000. They used the straight-line method of depreciation for financial statement reporting and MACRS for the amount of depreciation reported to the IRS. a. Which method of depreciation resulted in the largest write-off in the first year? b. How much greater was the write-off using your answer to (a) above?

Question 2

Dundaff Plumbing receives an invoice for an order of copper tubing dated May 15, with terms 5/10, 15 Extra. What is the discount date?

[ynlevi]

Answer to Question 1

a. MACRS
b. 299,760

Answer to Question 2

9-Jun

[arivle123]

TYSM

[aruss1303]

Gracias!