Question

Required information [The following information applies to the questions displayed below.) Woolard Supplies (a sole proprietorship) has taxable income in 2019 of $240,000 before any depreciation deductions (5179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture had been used previously by Liz Woolard (the owner of the business) before it was placed in service by the business. (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Asset Office furniture (used) Placed In Service March 20 Basis $1,163,800 .. Woolard elects $50,000 of 5179. what is Woolard's total depreciation deduction for the year Woolards total depreciation

Answer 1

Ans: A), If woolard elects $50,000 of 179, woolard total depreciation:

Particulars	Amount($)
Property Placed in service in 2019	1,163,000
Elected $179 deduction(given)	50,000
Remained asset(furniture basis)	1,113,000
MACRS depreciation rate {7 years, half year convention}	14.29%
MACRS depreciation {1,113,000*14.29%}	159,048
Taxable income Limitation for $179 (240,000-159,048)	80,952
Deducted $179 expense (lesser of elected amount or 80,952)	50,000
Woolard total depreciation deduction( 159,048+50,000)	209,048