Patrick purchased a used passenger automobile on June 1, 2018. He paid $19,000 for the automobile. During 2018, he uses the automobile 75 percent of the time for business. Patrick wishes to claim the maximum amount of depreciation possible (no bonus depreciation or election to expense).
a. |
Calculate Patrick's depreciation expense on the automobile for 2018. |
b. |
Calculate Patrick's depreciation expense on the automobile for 2019, assuming the same 75 percent business use. |
Patrick purchased a used passenger automobile on June 1, 2018. He paid $19,000 for the automobile....
On September 14, 2018, Jay purchased a passenger automobile that is used 75 percent in his accounting business. The automobile has a basis for depreciation purposes of $43,000, and Jay uses the accelerated method under MACRS. Jay does not elect to expense under section 179. Calculate Jay's depreciation deduction for 2018 assuming bonus depreciation.
21. Brenda bought in 2018 a passenger automobile for $15,000. The automobile is used 100% for qualified business purposes. What is the maximum depreciation expense deduction, including bonus depreciation, assuming the election to expense is not made? a. b. c. d. e. $11,160 $3,160 $9,000 $15,000 None of the above. The answer is _________
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Problem 8-8 Modified Accelerated Cost Recovery System (MACRS), Election to Expense, Listed Property, Limitation on Depreciation of Luxury Automobiles (LO 8.2, 8.3, 8.4, 8.5) During 2018, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30) $51,500 Baking equipment (June 30) 6,500 Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile (which has a...
In June of 2019 Frederick acquired an passenger automobile for $45,000 and used the automobile 85% for business. The maximum depreciation deduction for 2019 is: $15,300 $18,000 $8,000 $10,000
An asset (not an automobile) placed in service in June 2018 has a depreciable basis of $2,555,000, a recovery period of 5 years, and is the only asset placed in service during the year. Assuming bonus depreciation is not used, a half-year convention, and the expensing election is made for the maximum eligible amount, what is the amount of cost that can be deducted in 2018 assuming the business earned taxable income of $1,000,000 before deducting any cost recovery?
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Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $19,000 for the truck. The truck is expected to have a $3,000 residual value and a 4-year life. Cambridge has a December 31 fiscal year end. Using the straight-line method, how much is the 2019 depreciation expense? (Enter only whole dollar values.)
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