What is the UBIA of the following asset? A piece of machinery purchased for $4,000 and immediately placed into service. In the first year, a Section 179 deduction of $2,000 was taken, in addition to bonus depreciation of $1,000, and regular depreciation of $200.
$800
$2,000
$2,800
$4,000
Unadjusted Basis Immediately After (UBIA) is determined without regard to any depreciation, amortization, depletion, adjustments for tax credits claimed by the taxpayer. Therefore, for purchased property, UBIA generally will be its cost as of the date the property is placed in service.
So, here the machinery was purchased for $4,000 and immediately placed into service. The answer is option "d" .ie its cost $4000.
What is the UBIA of the following asset? A piece of machinery purchased for $4,000 and...
The unadjusted basis immediately after acquisition (UBIA) can be defined as: The cost of the property minus any Section 179 deduction. The cost of the property minus any bonus depreciation. The cost of the property when placed in service minus depreciation taken. The cost of the property when placed in service.
The unadjusted basis immediately after acquisition (UBIA) can be defined as: a. the cost of the property minus any Section 179 deduction b.The Cost of the property minus any bonus depreciation c. The cost of the property when placed in service minus depreciation taken d. The cost of the property when placed in service
calculate the current year 2019 depreciation for the following asset. Machinery 7 year property purchased on 6/30/18 for 18,000. this was the only asset purchased in 2018. no bonus depreciation or section 179 bonus depreciagion was taken on the asset.
In 2016, Olga Co. purchased a piece of business-use equipment for $100,000. The equipment has a 7-year MACRS GDS recovery period and is depreciated under MACRS GDS (no SL election). The equipment was placed in service on September 10, 2016. This was the only asset that Olga Co. placed in service in 2016. Olga Co. did not elect Section 179 deduction and elected out of Section 168(k) bonus depreciation. What is Olga Co.'s depreciation deduction for 2016 (the year the...
In 2016, Oliver Co. purchased a business-use asset for $100,000. The asset has a 5-year ACS GDS recovery period and is depreciated under MACRS GDS (no SL election). The asset was placed in service on October 10, 2016. This was the only asset that Oliverio. placed in service in 2016. Oliver Co. did not elect Section 179 deduction and elected out of Section 168(k) bonus depreciation. Oliver Co. sold the asset on February 1, 2019. What is the Oliver Co....
In 2020, Oscar Co. purchased a piece of business-use equipment for $1,000,000. The equipment has a 7-year MACRS GDS recovery period and is depreciated under MACRSGDS (no SL election). The equipment was placed in service on September 10, 2020. This was the only asset that Oscar Co. placed in service in 2020. Oscar Co. did not electSection 179 deductions. Oscar Co. did not elect out of Section 168(k) bonus depreciation. What will Oscar’s depreciation deduction be for 2021?
In 2020, Oscar Co. purchased a piece of business-use equipment for $1,000,000. The equipment has a 7-year MACRS GDS recovery period and is depreciated under MACRSGDS (no SL election). The equipment was placed in service on September 10, 2020. This was the only asset that Oscar Co. placed in service in 2020. Oscar Co. did not electSection 179 deductions. Oscar Co. did not elect out of Section 168(k) bonus depreciation. What is Oscar Co.'s total depreciation deduction for 2020?
Maryland Corp purchased a 10 year asset in January for $200,000. This was the only asset the company placed in service during that year. Neither the straight line method nor the 150% declining balance method was elected. The company elects out of bonus depreciation and the Section 179 expense deduction. Maryland Corp sold the 10 year property in February of Year 5. What is the depreciation allowable in the year of sale?
Which of the following would be included in the unadjusted basis immediately after acquisition (UBIA)? Section 179. Cost. Bonus depreciation. Prior depreciation.
Kaytlan purchased and placed in service a new $2,870,000 five-year class asset on October 1, 2019. Assume this was the only asset purchased in 2019. Kaytlan elected to take the maximum Section 179 expense deduction allowed but elected NOT to take additional first-year (bonus) depreciation. Kaytlan’s taxable income for 2019 before the cost recovery on this asset was $600,000. Be sure to show all of your calculations for each numbered item!! You must complete the assignment on this worksheet! 1....