E9-18 Selecting the best depreciation method for tax purposes—partial year
[15–20 min]
Tumble Gymnastics Center, whose fiscal year ends December 31, paid $110,000 for
fitness equipment on April 1, 2012, that is expected to have a 10-year life. The
expected residual value is $50,000.
Requirement
1. Select the appropriate depreciation method for income tax purposes. Then determine
the extra amount of depreciation that Tumble can deduct by using the
selected method, versus straight-line, through December 2013.
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