Assuming no special election, determine the asset recovery periods, methods and convention under MACRS – General...
- Assuming no special election, determine the asset recovery periods, methods and convention under MACRS – General Depreciation System (GDS) for the following assets:
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Asset |
GDS recovery period |
GDS method |
GDS convention |
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Homework Answers
- Assuming no special election, determine the asset recovery periods, methods and convention under MACRS – General Depreciation System (GDS) for the following assets:
|
Asset |
GDS recovery period |
GDS method |
GDS convention |
|
7 years |
200%4 Declining balance |
Half-year or mid-quarter |
|
5 years |
200%5 Declining balance |
Half year or mid quarter |
|
5 years |
200%5 Declining balance |
Half year or mid quarter |
|
5 years |
200%5 Declining balance |
Half year or mid quarter |
|
27.5 years | Straight-line | Mid month |
|
39 years | Straight-line | Mid month |
|
5 years |
200%5 Declining balance |
Half year or mid quarter |
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Assuming no special election, determine the asset recovery
periods, methods and convention under MACRS – General...
1. Assuming no special election, determine the asset recovery periods, methods and convention under MACRS –...
1. Assuming no special election, determine the asset recovery periods, methods and convention under MACRS – General Depreciation System (GDS) for the following assets: Asset GDS recovery period GDS method GDS convention a. Office Desk 7 years b. Photocopier c. Office computer d. Manufacturing equipment e. 50-unit residential apartment building f. Office building (in service 1/1/18) g. Company-owned car
A taxpayer places a $1,050,000 5-year recovery period asset in service in 2019. This is the...
A taxpayer places a $1,050,000 5-year recovery period asset in service in 2019. This is the only asset placed in service in 2019. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)? a. $1,000,000 b. $200,000 c. $1,050,000 d. $1,026,000 e. $210,000 An asset (not an automobile) put in service in June 2019 has a depreciable basis of $35,000 and a recovery period...
A. For the properties listed below compute the depreciation taken during the useful life of the...
A. For the properties listed below compute the depreciation
taken during the useful life of the property for all depreciable
years assuming the half year convention applies. Assume that all
property is post-1986 property.
B. Include columns for the applicable AMT depreciation along
with the AMT adjustment.
Suggested Columns
Asset Description
Date Placed in Service
Cost Basis
Recovery Rate
MACRS Recovery Amount
MACRS Accumulated
Depreciation
Adjusted Basis
AMT Rate
PROPERTY Recovery Period, 3 3 Tractor unit Race horse over 2...
MACRS basic application - Assume a company that started business in 2xd purchased office furniture on...
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ebook Calculator Print Item Exercise 8-21 (Algorithmic) (10.2) Lucid acquires a 7-year dass asset on May 9, 2017, for $256,400. Eudid does not elect Immediate expanding under 179. He does daim any available additional first-year depreciation. Click here to access the depredation table to use for this problem. If required, round your answers to the nearest dollar. Eudid's cost recovery deduction is 45,786 x for 2017 and 60,176 X for 2016. Why w Under the modified accelerated cost recovery system...
Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ign...
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) Asset Machinery Computer equipment Used delivery truck Furniture Total Date Placed in Service October 25 February 3 March 17 April 22 Original Basis $ 84,000 $ 24,000 $ 37,000 $164,000 $ 309,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new flooring (qualified...
On May 31, 2017, Javier Sanchez purchased and placed in service a 7-year class asset costing...
On May 31, 2017, Javier Sanchez purchased and placed in service a 7-year class asset costing $698,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Compute the maximum deductions (including first year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2017 and 2018. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for...
Check my w Part 1 of 2 Required information [The following information applies to the questions...
Check my w Part 1 of 2 Required information [The following information applies to the questions displayed below.) 10 points AMP Corporation (calendar-year-end) has 2019 taxable income of $1,900,000 for purposes of computing the $179 expense. During 2019, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Skipped eBook Print Asset Machinery Computer equipment Office building Total Placed in Service Basis September 12 $1,550,000 February 10 365,000 April 2 480,000 $2,395,000...
Universal Electronics is considering the purchase of manufacturing equipment with a 10-year midpoint in its asset...
Universal Electronics is considering the purchase of
manufacturing equipment with a 10-year midpoint in its asset
depreciation range (ADR). Carefully refer to Table 12–11 to
determine in what depreciation category the asset falls. (Hint: It
is not 10 years.) The asset will cost $255,000, and it will produce
earnings before depreciation and taxes of $85,000 per year for
three years, and then $40,000 a year for seven more years. The firm
has a tax rate of 25 percent. Assume the...
Universal Electronics is considering the purchase of manufacturing equipment with a 10-year midpoint in its asset...
Universal Electronics is considering the purchase of manufacturing equipment with a 10-year midpoint in its asset depreciation range (ADR). Carefully refer to Table 12-11 to determine in what depreciation category the asset falls. (Hint: It is not 10 years.) The asset will cost $235,000, and it will produce earnings before depreciation and taxes of $76,000 per year for three years, and then $37,000 a year for seven more years. The firm has a tax rate of 25 percent. Assume the...
A. For the properties listed below compute the depreciation
taken during the useful life of the property for all depreciable
years assuming the half year convention applies. Assume that all
property is post-1986 property.
B. Include columns for the applicable AMT depreciation along
with the AMT adjustment.
Suggested Columns
Asset Description
Date Placed in Service
Cost Basis
Recovery Rate
MACRS Recovery Amount
MACRS Accumulated
Depreciation
Adjusted Basis
AMT Rate
PROPERTY Recovery Period, 3 3 Tractor unit Race horse over 2...
MACRS basic application - Assume a company that started business in 2xd purchased office furniture on February 14, 2xx3, at a price of $10,000. Further assume that this was the only purchase of assets in the year and that no special depreciation rules apply. The equipment is Office equipment classified as MACRS 7-year property. What should the company consider given that this is its only property placed in service for the year? What is the tax depreciation expense for 2xx3?...
ebook Calculator Print Item Exercise 8-21 (Algorithmic) (10.2) Lucid acquires a 7-year dass asset on May 9, 2017, for $256,400. Eudid does not elect Immediate expanding under 179. He does daim any available additional first-year depreciation. Click here to access the depredation table to use for this problem. If required, round your answers to the nearest dollar. Eudid's cost recovery deduction is 45,786 x for 2017 and 60,176 X for 2016. Why w Under the modified accelerated cost recovery system...
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) Asset Machinery Computer equipment Used delivery truck Furniture Total Date Placed in Service October 25 February 3 March 17 April 22 Original Basis $ 84,000 $ 24,000 $ 37,000 $164,000 $ 309,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new flooring (qualified...
Check my w Part 1 of 2 Required information [The following information applies to the questions displayed below.) 10 points AMP Corporation (calendar-year-end) has 2019 taxable income of $1,900,000 for purposes of computing the $179 expense. During 2019, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Skipped eBook Print Asset Machinery Computer equipment Office building Total Placed in Service Basis September 12 $1,550,000 February 10 365,000 April 2 480,000 $2,395,000...
Universal Electronics is considering the purchase of
manufacturing equipment with a 10-year midpoint in its asset
depreciation range (ADR). Carefully refer to Table 12–11 to
determine in what depreciation category the asset falls. (Hint: It
is not 10 years.) The asset will cost $255,000, and it will produce
earnings before depreciation and taxes of $85,000 per year for
three years, and then $40,000 a year for seven more years. The firm
has a tax rate of 25 percent. Assume the...
Universal Electronics is considering the purchase of manufacturing equipment with a 10-year midpoint in its asset depreciation range (ADR). Carefully refer to Table 12-11 to determine in what depreciation category the asset falls. (Hint: It is not 10 years.) The asset will cost $235,000, and it will produce earnings before depreciation and taxes of $76,000 per year for three years, and then $37,000 a year for seven more years. The firm has a tax rate of 25 percent. Assume the...
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