Assignment
Length: 1000-1200 words.
In January 20XX, JIM, purchased $350,000 of new MACRS (Modified Accelerated Cost Recovery System) 5-year property in the United States. This equipment was placed in service May 1, 20XX. JIM wants to take as much depreciation in 20XX as possible.
• Calculate the depreciation for 20XX.
• If JIM had been located in a qualified enterprise zone, what would be the depreciation amount?
• Explain the depreciation method you used.
In addition, include the tax benefits (savings) for the first year and the present value of the total tax benefits for the entire 5-year period.
• Discuss how the tax benefits and present value would change if a different method of depreciation was used.
• Also, discuss when JIM would not choose to take as much depreciation as possible.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.