On April 5, 2019, Orange Corporation purchased and placed in service 7-year class assets costing $1,050,000...
On April 5, 2019, Orange Corporation purchased and placed in service 7-year class assets costing $1,050,000 and 5-year class assets costing $140,000. Orange elects to expense the maximum amount under § 179. Orange does not take additional first-year depreciation. Assume taxable income is not a limitation. Determine Orange’s maximum cost recovery with respect to the assets for 2019.
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![$ 179 limit 1020000 7-year assets $ 179 expense Regular MACRS [(1050000 - 1020000) x 0.1429] 1020000 4287 5-year assets Regul](http://img.homeworklib.com/questions/c442f730-6f6d-11ea-9b9c-d1a18381f329.png?x-oss-process=image/resize,w_560)
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On April 5, 2019, Orange Corporation purchased and placed in
service 7-year class assets costing $1,050,000...
In April of 2019, Jack purchased and placed in service $70,000 of automobiles (5-year class life)...
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A taxpayer places a $1,050,000 5-year recovery period asset in service in 2019. This is the...
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Section 179. In May 2019, Riddick Enterprises placed in service new 7 year property costing $1,100,000...
Section 179. In May 2019, Riddick Enterprises placed in service new 7 year property costing $1,100,000 and new 5 year property costing $1,100,000. These are the only two properties Riddick placed in service during the year. Riddick elects out of bonus depreciation. a. Compute Riddick's total depreciation expense deduction assuming Riddick uses regular MACRS and elects to take the maximum Section 179 expense on the 5 year property. b. Compute Riddick's total depreciation expense deduction assuming Riddick uses regular MACRS...
38. A taxpayer places a $1,050,000 5-year recovery period asset in service in 2018. This is...
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In 2019 Toby Started a Schedule C business and placed in service the following two new 100% business use machines. Machi...
In 2019 Toby Started a Schedule C business and placed in service the following two new 100% business use machines. Machine A (3 year class) on 2/15/19 cost of $87,000 Machine B (5 year class) on 11/7/19 cost of $163,000 No election is made to use the straight line method. Toby Elects not to take additional first year bonus depreciation. Toby's business profit, before any cost recovery (depreciation) deduction, is $300,000. 1. Calculate total cost recovery for 2019 if Toby...
On May 31, 2017, Javier Sanchez purchased and placed in service a 7-year class asset costing...
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Problem 8-42 (a) (LO. 2, 3) Dorcas is the proprietor of a small business. In 2019,...
Problem 8-42 (a) (LO. 2, 3) Dorcas is the proprietor of a small business. In 2019, the business income, before consideration of any cost recovery or 5 179 deduction, is $170,000. Dorcas spends $50,000 on new seven-year dass assets and elects to take the 5 179 deduction on them. She elects not to take additional first-year depreciation. Dorcas's cost recovery deduction for 2019, for 5-year assets (not purchased this year), is $90,000. If an amount is zero, enter "0". If...
3. (5 points) White Corporation purchases a heavy piece of machinery (7-year property) on November 8, 2019, at a co...
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On July 21, 2019, Andrew purchased and placed in service a new car. The purchase price...
On July 21, 2019, Andrew purchased and placed in service a new car. The purchase price was $52,000. This was the only business-use asset Andrew acquired in 2019. He used the car 85% of the time for business and 15% for personal use and maintains proper documentation of use. Andrew would like to deduct the maximum amount possible. Calculate the total deduction Andrew can take with respect to the car for 2019. Kendra Brown, a sole proprietor, acquires a new...
In April of 2019, Jack purchased and placed in service $70,000 of automobiles (5-year class life) for his business. In August of 2019, he purchased and placed in service $40,000 of trucks (5-year class life) for his business. In November of 2019, he purchased and placed in service $90,000 of furniture (7-year class life) for his business. These are the only assets placed in service during the year. His taxable income (before the 179 deduction) for 2019 is $50,000. Jack...
38. A taxpayer places a $1,050,000 5-year recovery period asset in service in 2018. This is the only asset placed in service in 2018. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)? a. $200,000 b. $210,000 c. $1,000,000 d. $1,010,000 e. $1,050,000 ANSWER: d Please explain
Problem 8-42 (a) (LO. 2, 3) Dorcas is the proprietor of a small business. In 2019, the business income, before consideration of any cost recovery or 5 179 deduction, is $170,000. Dorcas spends $50,000 on new seven-year dass assets and elects to take the 5 179 deduction on them. She elects not to take additional first-year depreciation. Dorcas's cost recovery deduction for 2019, for 5-year assets (not purchased this year), is $90,000. If an amount is zero, enter "0". If...
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