During 2018, William purchases the following capital assets for use in his catering business: New passenger...
During 2018, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30) $52,900 Baking equipment (June 30) 15,870 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 5-year recovery period), and he also uses the MACRS accelerated method to calculate depreciation but elects out of bonus depreciation. Assume he has adequate taxable income. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. Calculate William's maximum depreciation deduction for 2018, assuming he uses the automobile 100 percent in his business.
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
During 2018, William purchases the following capital assets for
use in his catering business: New passenger...
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...
On September 14, 2018, Jay purchased a passenger automobile that is used 75 percent in his...
On September 14, 2018, Jay purchased a passenger automobile that is used 75 percent in his accounting business. The automobile has a basis for depreciation purposes of $43,000, and Jay uses the accelerated method under MACRS. Jay does not elect to expense under section 179. Calculate Jay's depreciation deduction for 2018 assuming bonus depreciation.
19. During 2018, Teodoro purchases $425,000 of manufacturing equipment (7-year property) for use in his business....
19. During 2018, Teodoro purchases $425,000 of manufacturing equipment (7-year property) for use in his business. Teodoro has taxable income from his business of $150,000. What is the maximum amount that Teodoro may deduct under the election to expense depreciation without considering Bonus and MACRS? (rounded to the nearest dollar) a. $60,733 b. $500,000 c. $425,000 d. $150,000 e. None of the above. The answer is _________
28. On August 1, 2018, David purchased manufacturing equipment for use in his business. The equipment...
28. On August 1, 2018, David purchased manufacturing equipment for use in his business. The equipment cost $14,000 and has an estimated useful life and MACRS class life of 7 years. a. Calculate the amount of depreciation on the manufacturing equipment for 2018 using the accelerated MACRS method and no election to expense or use bonus depreciation is made. b. Calculate the amount of depreciation on the manufacturing equipment for 2018 using the accelerated MACRS method and bonus depreciation used...
During 2019, Travis purchases $13,000 of used manufacturing equipment (7-year property) for use in his business,...
During 2019, Travis purchases $13,000 of used manufacturing equipment (7-year property) for use in his business, his only asset purchase that year. Travis has taxable income from his business of $51,000 before any cost recovery. What is the maximum amount that Travis may deduct under the election to expense? a. $0 b. $13,000 c. $25,000 d. $500,000 e. None of the above An asset (not an automobile) placed in service in June 2019 has a depreciable basis of $35,000...
On April 5, 2018, Kinsey places in service a new automobile that cost $70,250. He does...
On April 5, 2018, Kinsey places in service a new automobile that cost $70,250. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 75% for business and 25% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this problem. Assume the following luxury...
On April 5, 2018, Kinsey places in service a new automobile that cost $49,250. He does...
On April 5, 2018, Kinsey places in service a new automobile that cost $49,250. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 85% for business and 15% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this problem. Assume the following luxury...
Tax Problem On February 2, 2018, Katie purchased and placed in service a new $18,500 car....
Tax Problem On February 2, 2018, Katie purchased and placed in service a new $18,500 car. The car was used 65% for business, 5% for production of income, and 30% for personal use in 2018. In 2019, the usage changed to 40% for business, 15% for production of income, and 45% for personal use. Katie did not elect immediate expensing under § 179. She elects not to take additional first-year depreciation. If required, round your answers to the nearest dollar....
Problem 8-46 (Algorithmic) (LO. 4) On April 30, 2018, Leo purchased and placed in service a new car that cost $63,0...
Problem 8-46 (Algorithmic) (LO. 4) On April 30, 2018, Leo purchased and placed in service a new car that cost $63,000. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any § 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles. a. What MACRS convention applies to the new car?...
On July 1, 2015, Rex purchases a new automobile for $41,500. He uses the car 86%...
On July 1, 2015, Rex purchases a new automobile for $41,500. He uses the car 86% for business and drives the car as follows: 12,500 miles in 2015, 31,250 miles in 2016, 35,000 miles in 2017, and 25,000 miles in 2018. Determine Rex's basis in the business portion of the auto as of January 1, 2019, under the following assumptions: If required, round answers to the nearest dollar. a. Rex uses the automatic mileage method. Compute his basis adjustments for...
28. On August 1, 2018, David purchased manufacturing equipment for use in his business. The equipment cost $14,000 and has an estimated useful life and MACRS class life of 7 years. a. Calculate the amount of depreciation on the manufacturing equipment for 2018 using the accelerated MACRS method and no election to expense or use bonus depreciation is made. b. Calculate the amount of depreciation on the manufacturing equipment for 2018 using the accelerated MACRS method and bonus depreciation used...
On April 5, 2018, Kinsey places in service a new automobile that cost $70,250. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 75% for business and 25% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this problem. Assume the following luxury...
Problem 8-46 (Algorithmic) (LO. 4) On April 30, 2018, Leo purchased and placed in service a new car that cost $63,000. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any § 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles. a. What MACRS convention applies to the new car?...
On July 1, 2015, Rex purchases a new automobile for $41,500. He uses the car 86% for business and drives the car as follows: 12,500 miles in 2015, 31,250 miles in 2016, 35,000 miles in 2017, and 25,000 miles in 2018. Determine Rex's basis in the business portion of the auto as of January 1, 2019, under the following assumptions: If required, round answers to the nearest dollar. a. Rex uses the automatic mileage method. Compute his basis adjustments for...
Most questions answered within 3 hours.
-
Describe how do you feel about the post below and
why?
Listening to the podcast reaffirmed...
asked 1 minute ago -
To start an avalanche on a mountain slope, an artillery shell is
fired with an initial...
asked 14 minutes ago -
The population of bacteria in a culture can be modeled by P left
parenthesis t right...
asked 18 minutes ago -
Which factors can prevent permanent fixation of an allele (i.e.
maintain genetic diversity)? Hint: You're going...
asked 20 minutes ago -
Compare a two-year bond with two successive one-year bonds in a
situation in which an investor...
asked 42 minutes ago -
Chapter 6
Search the internet and find a newspaper example of a price
ceiling, price floor...
asked 37 minutes ago -
Sarah Bates, calendar year taxpayer, started a new business on
October 8th. A number of start-up...
asked 38 minutes ago -
You and your friends are playing in the swimming pool with a
40-cm-diameter beach ball. How...
asked 43 minutes ago -
Patterson Development sometimes sells property on an installment
basis. In those cases, Patterson reports income in...
asked 55 minutes ago -
please help with these two example, i want to double check my
work. thanks
1.
sum:=0...
asked 52 minutes ago -
in the formation of 1.0 mole of the following crystalline solids
from the gaseous ions most...
asked 57 minutes ago -
Please answer Letter G only.
Price
Quantity
TR
MR
MC
TC
Profit
$15,000
0
0
----...
asked 58 minutes ago