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Name two other ways in which an asset can be disposed off.

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Disposition of a capital asset can trigger several different taxaffects in the current system of taxation. The following writingshould introduce several possible implications and treatments thatresult from capital asset elections for tax purposes. For thisdiscussion, please answer the following prompts: What are theaccounting and tax implications of using the MACR's acceleratedcost recovery election for tax and other depreciation methods forfinancial accounting and reporting? What is the prospect ofrecapture on assets disposed before full cost recovery is complete?When would the MACR's straight line be preferable toaccelerated?

Federal Taxation class

Disposition of a capital asset can trigger several different taxaffects in the current system of taxation. The following writingshould introduce several possible implications and treatments thatresult from capital asset elections for tax purposes.

What are the accounting and tax implications of using the MACR'saccelerated cost recovery election for tax and other depreciationmethods for financial accounting and reporting?

What is the prospect of recapture on assets disposed before fullcost recovery is complete?

When would the MACR's straight line be preferable toaccelerated?

ANSWER IN WORD FORMAT NOT ATTACHMENT AND ANSWERTHOROUGHLY.PLEASE. THANKS

A Factory is engaged in the production of silk fabric of differenttypes. Mr. john one of the directors, bought latest embroiderymachines for its newly established embroidery unit for Rs.2,450,000/- on 1st January 2011. The company depreciates machinery@10% p.a. The machinery will be disposed off at the end of 5th yearat Rs.1,280,000/-. The accounts are closed on 31st December eachyear.
Prepare the Fixed Asset Schedule regarding machinery showing thecolumns
of Years, Cost, Depreciation charges, Accumulated depreciation andWritten
down value for five years using the following methodsseparately:
a) Straight line method
b) Diminishing balance method
also calulate profit and loss on the disposal of machinery underboth a & b methods
(Use of proper tables and titles)

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