Homework Answers
Solution:
The answer is b) $ 6,000.
Explanation:
1) As per section 179 deduction is subjected to two types of limitations
2) One is dollar value limitation and secondly business income limitation.
3) Business Income limitation is subjects the deduction to the extent of business/taxable income earned during that year.
4) In this case, business income is $6,000. So, amount of currently deductible 179 expense is $6,000.
5) MACRS table percentage for first year for 7-year class property as per Half-Year Convention is 14.29%.
6) Here we use half year convention because mid quarter convention does not applies here.
7) In order to apply, mid quarter convention, 40% of total of property should be placed in service during in last quarter of year.
8) So, Remaining options are Incorrect.
Add Answer to:
also Macrs table percentage for first year?
Rocky bought 7-year class property on January 4, this...
Mary purchased a new five-year class asset on March 7, of the current year. The asset...
Mary purchased a new five-year class asset on March 7, of the current year. The asset was listed property (not an automobile). It was used 70% for business and the rest of the time for personal use. The asset cost $20,000. Mary made the § 179 election. The income from the business before the § 179 deduction was $200,000. Determine the total deductions with respect to the asset for 2019. $6,000 $10,000 $14,000 $20,000
In April of 2019, Jack purchased and placed in service $70,000 of automobiles (5-year class life)...
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...
De 10.7 Lori, who is single, purchased 5-year class property for $200,000 and 7-year class property...
De 10.7 Lori, who is single, purchased 5-year class property for $200,000 and 7-year class property for $420,000 on May 20, 2018. Lori expects the taxable income Derived from her business (without regard to the amount expensed under $ 179) to be about $550,000. Lori has determined she should elect immediate 8 179 expens- ing in the amount of $520,000, but she doesn't know which asset she should com- pletely expense under $ 179. She does not claim any available...
69. Audra acquires the following new five-year class property in 2019: Asset Acquisition Date Cost A...
69. Audra acquires the following new five-year class property in 2019: Asset Acquisition Date Cost A В с Total January 10 July 5 November 15 $ 106,000 70,000 1,950,000 $ 2.126.000 Audra elects Code Section 179 treatment for Asset C. Her taxable income from her business would not create a limitation for purposes of the Code Section 179 deduction. Audra does not claim any available additional first-year depreciation deduction. Determine her total cost recovery deduction (including the Code Section 179...
Burbank Corporation (calendar-year-end) acquired the following property this year: (Use MACRS Table 1, Table 2, and...
Burbank Corporation (calendar-year-end) acquired the following property this year: (Use MACRS Table 1, Table 2, and Exhibit 10-10.) (Round your answer to the nearest whole dollar amount.) Asset Placed in Service Basis Used copier November 12 $ 7,800 New computer equipment June 6 14,000 Furniture July 15 32,000 New delivery truck October 28 19,000 Luxury auto January 31 70,000 Total $ 142,800 Burbank acquired the copier in a tax-deferred transaction when the shareholder contributed the copier to the business in...
For this exercise, assume that NO additional first-year depreciation is taken. Roger started a new business...
For this exercise, assume that NO additional first-year depreciation is taken. Roger started a new business in 2019 and purchases 3 year class property on February 14, 2019 in the amount of $120,000. On July 15, 2019, Roger purchases five year class property in the amount of $185,000. On December 15, 2019, Roger purchases $2,450,000 of 7 year class property. Assume Roger has $5,000,000 of net business income before consideration of any $179 deduction. Also assume that Roger does not...
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...
2. Wally acquires and places in service a new machine (seven year property) on january 10,...
2. Wally acquires and places in service a new machine (seven year property) on january 10, 2018 at a cost of $1,080,000. Wally makes the election to expense the maximum amount under 179, but does not elect to take any additional first - year depreciation allowance. Wally does elect to maximize his first year MACRS depreciation deduction. Determine the total depreciation deduction Wally may claim on his 2018 federal income tax return, based on the elections he wants to make?...
Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuming Half- Year Convention (Percentage Rates) For Property...
Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuming Half- Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 Recovery Year 3-Year (200% DB) 5-Year (200% DB) 7-Year (200% DB) 10-Year (200% DB) 15-Year (150% DB) 20-Year (150% DB) 33.33 14.29 10.00 5.00 3.750 20.00 32.00 44.45 24.49 18.00 9.50 7.219 14.81 * 19.20 17.49 14.40 8.55 6.677 7.41 11.52 * 12.49 11.52 7.70 6.177 11.52 8.93 * 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285...
3. (5 points) White Corporation purchases a heavy piece of machinery (7-year property) on November 8, 2019, at a co...
3. (5 points) White Corporation purchases a heavy piece of machinery (7-year property) on November 8, 2019, at a cost of $2,950,000. White Corporation has taxable income from its business in 2019 of $1,550,000 and elects to expense the maximum amount for the machinery purchase under Section 179 but elects out of bonus depreciation for this purchase. Compute White's allowable expensing deduction under Section 179 and allowable MACRS depreciation for the machinery in 2019 assuming that the machine is the...
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...
De 10.7 Lori, who is single, purchased 5-year class property for $200,000 and 7-year class property for $420,000 on May 20, 2018. Lori expects the taxable income Derived from her business (without regard to the amount expensed under $ 179) to be about $550,000. Lori has determined she should elect immediate 8 179 expens- ing in the amount of $520,000, but she doesn't know which asset she should com- pletely expense under $ 179. She does not claim any available...
69. Audra acquires the following new five-year class property in 2019: Asset Acquisition Date Cost A В с Total January 10 July 5 November 15 $ 106,000 70,000 1,950,000 $ 2.126.000 Audra elects Code Section 179 treatment for Asset C. Her taxable income from her business would not create a limitation for purposes of the Code Section 179 deduction. Audra does not claim any available additional first-year depreciation deduction. Determine her total cost recovery deduction (including the Code Section 179...
For this exercise, assume that NO additional first-year depreciation is taken. Roger started a new business in 2019 and purchases 3 year class property on February 14, 2019 in the amount of $120,000. On July 15, 2019, Roger purchases five year class property in the amount of $185,000. On December 15, 2019, Roger purchases $2,450,000 of 7 year class property. Assume Roger has $5,000,000 of net business income before consideration of any $179 deduction. Also assume that Roger does not...
Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuming Half- Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 Recovery Year 3-Year (200% DB) 5-Year (200% DB) 7-Year (200% DB) 10-Year (200% DB) 15-Year (150% DB) 20-Year (150% DB) 33.33 14.29 10.00 5.00 3.750 20.00 32.00 44.45 24.49 18.00 9.50 7.219 14.81 * 19.20 17.49 14.40 8.55 6.677 7.41 11.52 * 12.49 11.52 7.70 6.177 11.52 8.93 * 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285...
3. (5 points) White Corporation purchases a heavy piece of machinery (7-year property) on November 8, 2019, at a cost of $2,950,000. White Corporation has taxable income from its business in 2019 of $1,550,000 and elects to expense the maximum amount for the machinery purchase under Section 179 but elects out of bonus depreciation for this purchase. Compute White's allowable expensing deduction under Section 179 and allowable MACRS depreciation for the machinery in 2019 assuming that the machine is the...
Most questions answered within 3 hours.
-
In
IUPAC naming, do we concider the prefix in alphabatizing?
In other words do we look...
asked 1 minute ago -
If a trust has income required to be distributed of $11,500,
other amounts paid or required...
asked 17 minutes ago -
The degree of ionization of a weak acid
____________________.
Select all that are True.
a) varies...
asked 17 minutes ago -
Cereal for Breakfast. A cereal company claims
70% of Americans start the day with cereal for...
asked 18 minutes ago -
An elevator has a placard stating that the maximum capacity is
2400 lblong dash15 passengers. So,...
asked 21 minutes ago -
two charged proteins P1 and P2 are located at the positions
(1m,1m) and (-1m,1m) respectively on...
asked 31 minutes ago -
eBook
Calculator
Job Order Cost Sheet
Remnant Carpet Company sells and installs commercial carpeting
for office...
asked 36 minutes ago -
Using Kapustinskii equation, determine the lattice energy of a
hypothetical compound NaCl2 . Assume the sum...
asked 38 minutes ago -
Most schools and
businesses require some standard style of documentation for written
reports. Discuss why might...
asked 36 minutes ago -
cookbooks are going metric. in such books 1 cup is equal to 240
ml. Express 1...
asked 39 minutes ago -
________40. Which of the following is the correct sequence of
steps in the general
adaptation...
asked 47 minutes ago -
Hi, Please draw the network diagram.
Activity D on a CPM network has predecessors B and...
asked 49 minutes ago