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Reilly Construction CompanyThe bookkeeper for the Reilly Construction Company is computing ...

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Reilly Construction CompanyThe bookkeeper for the Reilly Construction Company is computing ...

Reilly Construction Company

The bookkeeper for the Reilly Construction Company is computing depreciation for income tax purposes, using the figures from the MACRS tables supplied by the IRS. Reilly Construction Company purchased a truck in February 2005, for $40,000. In March 2005, a second truck was purchased at $48,000. Assume that allowable depreciation for each truck is 20% the first year and 32% the second.

Refer to Reilly Construction Company. Compute the total allowable cost recovery on the two trucks for the year 2006.

Textbook

Contemporary Business Mathematics for Colleges

Edition: 16^th

Authors: Deitz, Southam

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