Maryland Corp purchased a 10 year asset in January for $200,000. This was the only asset...
Maryland Corp purchased a 10 year asset in January for $200,000. This was the only asset the company placed in service during that year. Neither the straight line method nor the 150% declining balance method was elected. The company elects out of bonus depreciation and the Section 179 expense deduction. Maryland Corp sold the 10 year property in February of Year 5. What is the depreciation allowable in the year of sale?
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Maryland Corp purchased a 10 year asset in January for $200,000.
This was the only asset...
Sutton Inc. acquired a 10 year asset to which the half year convention applied. This was...
Sutton Inc. acquired a 10 year asset to which the half year convention applied. This was the only asset the company placed in service during the year. The taxpayer elected out of Section 179 expense deduction and additional depreciation. Neither the straight-line method nor the 150% declining balance method was elected. The cost of $10,000. What is the depreciation for the first year? A. $250, B. $1,000, C. $1,750, D. $2,000
Heidi Inc, acquired a 15 year asset for $100,000. The mid-quarter convention applied to this asset,...
Heidi Inc, acquired a 15 year asset for $100,000. The mid-quarter convention applied to this asset, which was acquired in the second quarter. The straight line method was not elected. The company elects out of bonus depreciation and the Section 179 expense deduction. What is the depreciation for Year 6 if it was sold on August 1? A. $2,246, B. $2,995, C. $3,844, D. $5,990
In 2016, Oliver Co. purchased a business-use asset for $100,000. The asset has a 5-year ACS...
In 2016, Oliver Co. purchased a business-use asset for $100,000. The asset has a 5-year ACS GDS recovery period and is depreciated under MACRS GDS (no SL election). The asset was placed in service on October 10, 2016. This was the only asset that Oliverio. placed in service in 2016. Oliver Co. did not elect Section 179 deduction and elected out of Section 168(k) bonus depreciation. Oliver Co. sold the asset on February 1, 2019. What is the Oliver Co....
purchased a business asset 5-year property on March 10, 2019, at a cost of $90,000. She...
purchased a business asset 5-year property on March 10, 2019, at a cost of $90,000. She did not elect to expense any of the cost under Section 179 and elected out of bonus depreciation, sold the asset on January 20, 2020. What is the adjusted basis in the asset at the time of sale?
KC Industries acquired a new 5-year asset on May 1. 2017 for a total cost of...
KC Industries acquired a new 5-year asset on May 1. 2017 for a total cost of $82,000. It was the only asset that KC acquired during 2017. Assume that KC elected to not take any bonus depreciation nor any Section 179 deduction. What will be the depreciation deduction in 2019?
Kaytlan purchased and placed in service a new $2,870,000 five-year class asset on October 1, 2019....
Kaytlan purchased and placed in service a new $2,870,000 five-year class asset on October 1, 2019. Assume this was the only asset purchased in 2019. Kaytlan elected to take the maximum Section 179 expense deduction allowed but elected NOT to take additional first-year (bonus) depreciation. Kaytlan’s taxable income for 2019 before the cost recovery on this asset was $600,000. Be sure to show all of your calculations for each numbered item!! You must complete the assignment on this worksheet! 1....
Problem 10-54 (LO 10-2, LO 10-3) Convers Corporation (calendar-year-end) acquired the following assets during the current...
Problem 10-54 (LO 10-2, LO 10-3) 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.) Date Placed Original Asset in Service Basis Machinery October 25 $ 106,000 Computer equipment February 3 $ 46,000 Used delivery truck* March 17 $ 59,000 Furniture April 22 $ 186,000 Total $ 397,000 *The delivery truck is not a luxury automobile. In addition to...
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...
Section 179. In May 2019, Riddick Enterprises placed in service new 7 year property costing $1,100,000...
Section 179. In May 2019, Riddick Enterprises placed in service new 7 year property costing $1,100,000 and new 5 year property costing $1,100,000. These are the only two properties Riddick placed in service during the year. Riddick elects out of bonus depreciation. a. Compute Riddick's total depreciation expense deduction assuming Riddick uses regular MACRS and elects to take the maximum Section 179 expense on the 5 year property. b. Compute Riddick's total depreciation expense deduction assuming Riddick uses regular MACRS...
In 2016, Olga Co. purchased a piece of business-use equipment for $100,000. The equipment has a...
In 2016, Olga Co. purchased a piece of business-use equipment for $100,000. The equipment has a 7-year MACRS GDS recovery period and is depreciated under MACRS GDS (no SL election). The equipment was placed in service on September 10, 2016. This was the only asset that Olga Co. placed in service in 2016. Olga Co. did not elect Section 179 deduction and elected out of Section 168(k) bonus depreciation. What is Olga Co.'s depreciation deduction for 2016 (the year the...
KC Industries acquired a new 5-year asset on May 1. 2017 for a total cost of $82,000. It was the only asset that KC acquired during 2017. Assume that KC elected to not take any bonus depreciation nor any Section 179 deduction. What will be the depreciation deduction in 2019?
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...
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