Question

Chaz Corporation has taxable income in 2020 of $426,000 for purposes of computing the $179 expense and acquired the following assets during the year: $ Asset Office furniture Computer equipment Delivery truck Qualified improvement property Total Placed in Service September 12 February 10 August 21 September 30 Basis 781, 000 910,000 55,000 1, 511, 000 $ 3, 257,000 What is the maximum total depreciation deduction that Chaz may deduct in 2020? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your intermediate calculations and final answer to the nearest whole dollar am int.) Maximum total depreciation deduction

Answer 1

Maximum Total Depreciation Deduction - $304,751

Calculations as per following:

Chaz Corporation					Amount in $
Asset	Placed in Service	Basis	Maximum Depreciation using MACR	Property Classification	Depreciation Method	Rmarks
Office Furniture	September,12	781,000	111,571	7 Year	200 % Decline
Computer Equipment	February,10	910,000	182,000	5 Year	200 % Decline
Delivery Truck	August,21	55,000	11,000	5 Year	200 % Decline
Qualified Improvement Property	September,30	1,511,000				No Depreciation for First & Last Year as per Table 4.1
Total		3,257,000	304,571