Homework Answers
C. $39,000.
Full amount is depreciated until bonus depreciation phase out happens in 2023
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Problem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, LO...
roblem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3)...
roblem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3) Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2019. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $42,000 and an estimated useful life of 5 years. Assume half-year convention for...
Problem 8-8 Modified Accelerated Cost Recovery System (MACRS), Election to Expense, Listed Property, Limitation on Depreciation...
Problem 8-8 Modified Accelerated Cost Recovery System (MACRS), Election to Expense, Listed Property, Limitation on Depreciation of Luxury Automobiles (LO 8.2, 8.3, 8.4, 8.5) During 2018, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30) $51,500 Baking equipment (June 30) 6,500 Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile (which has a...
Problem 8-9 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS), Listed Property (LO 8.2, 8.4) On February...
Problem 8-9 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS), Listed Property (LO 8.2, 8.4) On February 2, 2018, Alexandra purchases a personal computer for her home. The computer cost $6,280. Alexandra uses the computer 80 percent of the time in her accounting business, and the remaining 20 percent of the time for various personal uses. Calculate Alexandra's maximum depreciation deduction for 2018 for the computer, assuming half-year convention and she does not make the election to expense or take bonus...
Question: Problem 8-4 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) On March 8, ......
Question: Problem 8-4 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) On March 8, ... Problem 8-4 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) On March 8, 2018, Holly purchased a residential apartment building. The cost basis assigned to the building is $195,400. Holly also owns another residential apartment building that she purchased on December 15, 2018, with a cost basis of $790,000. Click here to access the depreciation tables. If required, round intermediate calculations and final...
MACRS, or the Modified Accelerated Cost Recovery System is the current tax depreciation system in the...
MACRS, or the Modified Accelerated Cost Recovery System is the current tax depreciation system in the US. It assigns a schedule for yearly depreciation, depending on the type of property. Assume you are considering the purchase of a new $1756 laptop. Computers are to be depreciated as follows: 20% in year 1, 32% in year 2, 19.2% in year 3, 11.52% in years 4 and 5, and the final 5.76% in year 6. How much will your computer have been...
Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table...
Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.) Date Placed Original Asset in Service Basis Machinery 25-Oct $ 78,000 Computer equipment 03-Feb $ 18,000 Used delivery truck* 17-Mar $ 31,000 Furniture 22-Apr $ 158,000 Total $ 285,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new flooring (qualified improvement property) to...
Problem 10-54 (LO 10-2, LO 10-3) Convers Corporation (calendar-year-end) acquired the following assets during the current...
Problem 10-54 (LO 10-2, LO 10-3) Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.) Date Placed Original Asset in Service Basis Machinery October 25 $ 106,000 Computer equipment February 3 $ 46,000 Used delivery truck* March 17 $ 59,000 Furniture April 22 $ 186,000 Total $ 397,000 *The delivery truck is not a luxury automobile. In addition to...
Problem 6-44 (LO 6-3) On February 4, 2018, Jackie purchased and placed in service a car...
Problem 6-44 (LO 6-3) On February 4, 2018, Jackie purchased and placed in service a car she purchased for $23,400. The car was used exclusively for her business. Compute Jackie's cost recovery deduction in 2018 assuming no $179 expense but the bonus was taken: (Use Table 6A-1 and Luxury Automobile Depreciation) Jackie's cost recovery deduction
Problem 8-36 (b) (LO. 2) Starnell acquired the following new assets during 2019: Date Asset Cost...
Problem 8-36 (b) (LO. 2) Starnell acquired the following new assets during 2019: Date Asset Cost January 4 June 2 October 31 Computers and peripheral equipment Truck (not subject to any depreciation limitations) Office equipment $10,000 22,000 40,000 Starnell does not elect immediate expensing under $ 179 but elects additional first-year depreciation for the computers. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. What MACRS convention...
Assume that ACW Corporation has 2018 taxable income of $1,020,000 for purposes of computing the §179...
Assume that ACW Corporation has 2018 taxable income of $1,020,000 for purposes of computing the §179 expense. The company acquired the following assets during 2018 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5). Assume that the qualified improvement property has satisfied the conditions mentioned under Section 179(f)(2) Asset Placed in Service Basis Machinery Computer equipment Delivery truck Qualified improvement property Total 12-Sep 10-Feb 21-Aug 2-Apr $ 472,000 72,800 95,000 1,382,000 $2,021,000 a. What is the...
Problem 6-44 (LO 6-3) On February 4, 2018, Jackie purchased and placed in service a car she purchased for $23,400. The car was used exclusively for her business. Compute Jackie's cost recovery deduction in 2018 assuming no $179 expense but the bonus was taken: (Use Table 6A-1 and Luxury Automobile Depreciation) Jackie's cost recovery deduction
Problem 8-36 (b) (LO. 2) Starnell acquired the following new assets during 2019: Date Asset Cost January 4 June 2 October 31 Computers and peripheral equipment Truck (not subject to any depreciation limitations) Office equipment $10,000 22,000 40,000 Starnell does not elect immediate expensing under $ 179 but elects additional first-year depreciation for the computers. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. What MACRS convention...
Assume that ACW Corporation has 2018 taxable income of $1,020,000 for purposes of computing the §179 expense. The company acquired the following assets during 2018 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5). Assume that the qualified improvement property has satisfied the conditions mentioned under Section 179(f)(2) Asset Placed in Service Basis Machinery Computer equipment Delivery truck Qualified improvement property Total 12-Sep 10-Feb 21-Aug 2-Apr $ 472,000 72,800 95,000 1,382,000 $2,021,000 a. What is the...
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