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.) placed In Service March 20 Office furniture (used) Basis $1,169,000 a. If Woolard elects $50,000 of 5179, what is Woolard's total depreciation deduction for the year? Woolard's total depreciation

Answer 1

1	Property placed in service in 2019	$ 1,169,000
2	Elected 179 Deduction	$      50,000
3	Remaining Asset basis	$ 1,119,000
4	MACRS Rate (7 years, half year convention)	14.29%
5	MACRS Depreciation	$    159,905
6	Taxable Income limitation for 179 (240000-159905)	$      80,095
7	Deductible 179 Expense (lower of 6 or 2)	$      50,000
8	Total Depreciation Deduction (5+7)	$    209,905
1	Property placed in service in 2019	$ 1,169,000
2	179 Phase out limit	$ 2,550,000
3	Maximum 179 Deduction allowed	$ 1,020,000
4	Remaining Asset basis (1-3)	$    149,000
5	MACRS Depreciation	14.29%
6	MACRS Depreciation	$      21,292
7	Deductible 179 Expense (240000-21292)	$    218,708
8	Total Depreciation Deduction	$    240,000
9	179 Carryforward (3-7)	$    801,292
c	179 Expense
	((240000)-(1169000*14.29%))/(100% - 14.29%)	$      85,112