Which of the following would pertain to depreciating personal property (such as equipment or furniture and...
Which of the following would pertain to depreciating personal property (such as equipment or furniture and fixtures) acquired during the year? A. Cost recovery period of 5 or 7 years. B. Cost recovery period of 27.5 or 39 years. C. Mid-month convention. D. A and C only. E. B and C only.
Homework Answers
For depreciating personal property such as equipment or furniture and fixtures, cost recovery period of 5 or 7 years is eligible. Also, Mid month convention is also used.
The above methods are allowed only if the property is used after 1986.
Therefore, the correct answer is option (D), that is both A and C.
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Which of the following would pertain to depreciating personal
property (such as equipment or furniture and...
Way Corporation disposed of the following tangible personal property assets in the current year. Asset Furniture...
Way Corporation disposed of the following tangible personal property assets in the current year. Asset Furniture (7-year) Machinery (7-year) Delivery truck* (5- year) Machinery (7-year) Computer (5-year) Date Date Original Acquired Sold Sold Convention Convention Basis 5/12/15 7/15/19 HY $ 105,000 3/23/16 3/15/19 122,000 9/17/17 3/13/19 60,000 10/11/18 8/11/19 322,000 10/11/19 12/15/19 120,000 "Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2019 depreciation deduction (ignore 5179 expense and bonus depreciation...
Just need help on C In 2016, José purchased a house for $203,200. He used the...
Just need help on C In 2016, José purchased a house for $203,200. He used the house as his personal residence. In December 2019, when the fair market value of the house was $354,700, he converted the house to rental property. If required, round your answers to the nearest dollar. a. José's basis for cost recovery for the property is $ 203,200 (Correct). b. Under MACRS, the cost recovery period for residential rental real estate is 27.5 years, and it...
Problem 3: Disposal of assets Gekko Laboratories had purchased some manufacturing equipment five years ago for...
Problem 3: Disposal of assets Gekko Laboratories had purchased some manufacturing equipment five years ago for a total cost of $3,000,000, and has been depreciating those assets using the MACRS rates (i.e., with a 7-year recovery period). Gekko is currently in the market for newer, more efficient equipment, and has already found a buyer, Fox Pharmaceuticals, who is willing to pay $500,000 for the old equipment. If Gekko Labs, which has an effective tax rate of 35%, disposes of the...
1. Which of the following properties is not in the 5-year cost recovery class under MACRS?...
1. Which of the following properties is not in the 5-year cost recovery class under MACRS? a. office furniture b. light trucks c. computers d. automobiles e. all of the above belong in the 5-year cost recovery class 2.The MACRS basis of 5-year property acquired on January 13, 20X1 is $10,000. The property is sold on July 31, 20x3. If the half-year convention applies to personal property acquired in 20X1 and the regular (accelerated) MACRS method is used, depreciation expense...
During 2019, Travis purchases $13,000 of used manufacturing equipment (7-year property) for use in his business,...
During 2019, Travis purchases $13,000 of used manufacturing equipment (7-year property) for use in his business, his only asset purchase that year. Travis has taxable income from his business of $51,000 before any cost recovery. What is the maximum amount that Travis may deduct under the election to expense? a. $0 b. $13,000 c. $25,000 d. $500,000 e. None of the above An asset (not an automobile) placed in service in June 2019 has a depreciable basis of $35,000...
This was all the information provided. Problem 8-32 (Algorithmic) (LO. 1, 2) In 2016, José purchased...
This was all the information provided.
Problem 8-32 (Algorithmic) (LO. 1, 2) In 2016, José purchased a house for $203,200. He used the house as his personal residence. In December 2019, when the fair market value of the house was $335,200, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is $ 203,200 . b....
Problem 8-32 (Algorithmic) (LO. 1, 2) In 2016, José purchased a house for $258,000. He used...
Problem 8-32 (Algorithmic) (LO. 1, 2) In 2016, José purchased a house for $258,000. He used the house as his personal residence. In April 2019, when the fair market value of the house was $272,800, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is $ 243,700 X. years, and it is subject to the...
At the beginning of its 2019 tax year, Hiram owned the following business assets: Furniture Equipment...
At the beginning of its 2019 tax year, Hiram owned the following business assets: Furniture Equipment Machinery Date Placed in Service 6/19/17 5/2/16 9/30/16 Initial Cost $46,250 89,000 80,500 Accumulated Depreciation $17,936 63,368 57,316 Recovery Period 7-year 5-year 5-year Depreciation Convention Half year Half-year Half-year On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $612,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year....
how to do depreciation? Can you please give me one example of this of where putting the stuff at and i can do the rest. I am very confuse. V Assets Acquired in 2017 (This section may be helpful...
how to do depreciation? Can you please give me one example of
this of where putting the stuff at and i can do the rest. I am very
confuse.
V Assets Acquired in 2017 (This section may be helpful to fill out by hand first) Wolf P. purchased the following assets, all placed in service on 01/01/2017. Wolf P Inc. has elected out of Bonus Depreciation. Asset Cost New Kitchen Equipment Furniture Computers and software $350,000 $35,000 $12,000 $24,000 Food...
DLW Corp acquired and placed in service the following assets during the year: Commercial Building, date...
DLW Corp acquired and placed in service the following assets during the year: Commercial Building, date acquired 12/20, cost basis $341,000 What is DLW's year 3 cost recovery for each asset if DLW sells all of these assets on 3/14 of year 3? Nonresidential Real Prop Mid-Month Convention Straight Line-39 yrs, year 2-39 rate is 2.564%
Way Corporation disposed of the following tangible personal property assets in the current year. Asset Furniture (7-year) Machinery (7-year) Delivery truck* (5- year) Machinery (7-year) Computer (5-year) Date Date Original Acquired Sold Sold Convention Convention Basis 5/12/15 7/15/19 HY $ 105,000 3/23/16 3/15/19 122,000 9/17/17 3/13/19 60,000 10/11/18 8/11/19 322,000 10/11/19 12/15/19 120,000 "Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2019 depreciation deduction (ignore 5179 expense and bonus depreciation...
Problem 3: Disposal of assets Gekko Laboratories had purchased some manufacturing equipment five years ago for a total cost of $3,000,000, and has been depreciating those assets using the MACRS rates (i.e., with a 7-year recovery period). Gekko is currently in the market for newer, more efficient equipment, and has already found a buyer, Fox Pharmaceuticals, who is willing to pay $500,000 for the old equipment. If Gekko Labs, which has an effective tax rate of 35%, disposes of the...
This was all the information provided.
Problem 8-32 (Algorithmic) (LO. 1, 2) In 2016, José purchased a house for $203,200. He used the house as his personal residence. In December 2019, when the fair market value of the house was $335,200, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is $ 203,200 . b....
Problem 8-32 (Algorithmic) (LO. 1, 2) In 2016, José purchased a house for $258,000. He used the house as his personal residence. In April 2019, when the fair market value of the house was $272,800, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is $ 243,700 X. years, and it is subject to the...
At the beginning of its 2019 tax year, Hiram owned the following business assets: Furniture Equipment Machinery Date Placed in Service 6/19/17 5/2/16 9/30/16 Initial Cost $46,250 89,000 80,500 Accumulated Depreciation $17,936 63,368 57,316 Recovery Period 7-year 5-year 5-year Depreciation Convention Half year Half-year Half-year On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $612,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year....
how to do depreciation? Can you please give me one example of
this of where putting the stuff at and i can do the rest. I am very
confuse.
V Assets Acquired in 2017 (This section may be helpful to fill out by hand first) Wolf P. purchased the following assets, all placed in service on 01/01/2017. Wolf P Inc. has elected out of Bonus Depreciation. Asset Cost New Kitchen Equipment Furniture Computers and software $350,000 $35,000 $12,000 $24,000 Food...
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