Seafood Inc. purchased the following assets during Year 1: Office furniture $4,000, Delivery truck $25,000, Office building $400,000. What should be reported as the cost basis for MACRS seven-year property

Only Office furniture $4,000 should be reported as the cost basis for MACRS seven-year property by Seafood Inc.

Explanation:

Modified Accelerated Cost Recovery System (MACRS) refers to the US depreciation system under which there is a specific asset group with designated period of depreciation into which fixed assets are placed.

There is a depreciation table for all classes of assets which has been published by the Internal Revenue Service and MACRS seven-year property is one of these classes.

MACRS seven-year property implies that each of the assets under this class has seven years useful life, and assets under this class are office furniture and fixtures, agricultural machinery and equipment, natural gas gathering lines, and any asset not assigned to another class.

From the above therefore, only Office furniture $4,000 should be reported as the cost basis for MACRS seven-year property by Seafood Inc.

answernaturalistic observation;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.