Homework Answers
1. MACRS Cost recovery = 40,000*20% = 8000; For business=> 8000 *60% = 4800.
However, subject to the limit ie, 3160*60% = 1896
Hence, option B. 1896 is right.
2. Cost of building = 3700000-500000 = 3200000
Bhaskar chose ADS. So, Cost Recovery Deduction is 3200000* 0.25 = 80000.
Hence Option B. 80000 is right.
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2019 tax law applies
Un June 1, 2019, James places in service a new automobile that...
2019 tax law applies On June 1, 2019, James places in service a new automobile that...
2019 tax law applies
On June 1, 2019, James places in service a new automobile that cost $40,000. The car is used 60 % for business and 40% for personal use. (Assume this percentage is maintained for the life of the car.) James does not take additional first-year depreciation. Determine the cost recovery deduction for 2019. a. $1,776 b. $1,896 c. $4,800 d. $6,000 Bhaskar purchased a new factory building and land on September 10, 2019, for $3,700,000. ($500,000 of...
2. Bhaskar purchased a new factory building and land on September 10, 2019, for $3,700,000.($500,000 of the purchas...
2. Bhaskar purchased a new factory building and land on September 10, 2019, for $3,700,000.($500,000 of the purchase price was allocated to the land.) He elected the alternative depreciation system (ADS). Determine the cost recovery deduction for 2020. a. $23,328 b. $80,000 c. $82,048 d. $92,500
On June 1, 2018, Irene places in service a new automobile that cost $21,000. The car...
On June 1, 2018, Irene places in service a new automobile that cost $21,000. The car is used 70% for business and 30% for personal use. (Assume this percentage is maintained for the life of the car.) She does not take additional first-year depreciation. Determine the cost recovery deduction for 2019. a.$4,704 b.$3,290 d.$10,000
6). Nora purchased a new automobile on July 20, 2019, for $29,000. The car was used...
6). Nora purchased a new automobile on July 20, 2019, for $29,000. The car was used 60% for business and 40% for personal use. In 2020, the car was used 30% for business and 70% for personal use. Nora elects not to take additional first-year depreciation. Determine the cost recovery recapture and the cost recovery deduction for 2020.
Part I: On July 10, 2019 Ariff places in service a new SUV that cost $70,000...
Part I: On July 10, 2019 Ariff places in service a new SUV that cost $70,000 and weighed 6,300 pounds. The SUV is used 100% for business. Determine Ariff's maximum deduction for 2019, assuming Ariffs section 179 business income is $110,000. Ariff does not take additional first year depreciation. A. $2,960 B. $25,000 C. 34,400 D. $70,000 Part II: On July 17, 2018, Kevin places in service a used automobile that cost $25,000. The car is used 80% for business...
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....
On April 5, 2019, Kinsey places in service a new passenger automobile that cost $60,000. The...
On April 5, 2019, Kinsey places in service a new passenger automobile that cost $60,000. The car is used 100% for business in each tax year. Kinsey uses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Assume Kinsey elects any available additional first-year depreciation. The maximum depreciation allowed for 2019 is $ 12000 X and for 2020 is $ 19200
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2019, Kinsey places in service a new automobile...
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2019, Kinsey places in service a new automobile that cost $65,000. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 60% for business and 40% 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...
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2019, Kinsey places in service a new automobile...
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2019, Kinsey places in service a new automobile that cost $68,750. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 95% for business and 5% 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...
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2019, Kinsey places in service a new automobile...
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2019, Kinsey places in service a new automobile that cost 576,250. He does not elect $ 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 90% for business and 10% 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...
2019 tax law applies
On June 1, 2019, James places in service a new automobile that cost $40,000. The car is used 60 % for business and 40% for personal use. (Assume this percentage is maintained for the life of the car.) James does not take additional first-year depreciation. Determine the cost recovery deduction for 2019. a. $1,776 b. $1,896 c. $4,800 d. $6,000 Bhaskar purchased a new factory building and land on September 10, 2019, for $3,700,000. ($500,000 of...
2. Bhaskar purchased a new factory building and land on September 10, 2019, for $3,700,000.($500,000 of the purchase price was allocated to the land.) He elected the alternative depreciation system (ADS). Determine the cost recovery deduction for 2020. a. $23,328 b. $80,000 c. $82,048 d. $92,500
6). Nora purchased a new automobile on July 20, 2019, for $29,000. The car was used 60% for business and 40% for personal use. In 2020, the car was used 30% for business and 70% for personal use. Nora elects not to take additional first-year depreciation. Determine the cost recovery recapture and the cost recovery deduction for 2020.
On April 5, 2019, Kinsey places in service a new passenger automobile that cost $60,000. The car is used 100% for business in each tax year. Kinsey uses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Assume Kinsey elects any available additional first-year depreciation. The maximum depreciation allowed for 2019 is $ 12000 X and for 2020 is $ 19200
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2019, Kinsey places in service a new automobile that cost $65,000. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 60% for business and 40% 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...
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2019, Kinsey places in service a new automobile that cost $68,750. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 95% for business and 5% 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...
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2019, Kinsey places in service a new automobile that cost 576,250. He does not elect $ 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 90% for business and 10% 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...
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