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Business, 16.04.2021 18:50 brittanysanders

Alexa Inc. purchased equipment in 2018 for $50,000 with no residual value. On December 31, 2020, accumulated depreciation using the straight-line method for financial reporting was $15,000. For tax purposes, Alexa uses MACRS depreciation resulting in $35,600 in accumulated depreciation for tax purposes on December 31, 2020. Taxable income was $100,000 for 2020 and the company's tax rate is 25%. Required:
a. Determine the GAAP basis of equipment (net) on December 30, 2020.
b. Determine the tax basis of equipment on December 30, 2020.

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Alexa Inc. purchased equipment in 2018 for $50,000 with no residual value. On December 31, 2020, acc...
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