ZuoTi.Pro
Question

2. Wally acquires and places in service a new machine (seven year property) on january 10,...

2. Wally acquires and places in service a new machine (seven year property) on january 10, 2018 at a cost of $1,080,000. Wally makes the election to expense the maximum amount under 179, but does not elect to take any additional first - year depreciation allowance. Wally does elect to maximize his first year MACRS depreciation deduction. Determine the total depreciation deduction Wally may claim on his 2018 federal income tax return, based on the elections he wants to make? Assume Wally has taxable income of 350,000 in 2018.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
2. Wally acquires and places in service a new machine (seven year property) on january 10,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • QUESTION 13 White Company acquires a new machine (seven-year property) on January 10, 2020, at a...

    QUESTION 13 White Company acquires a new machine (seven-year property) on January 10, 2020, at a cost of $620,000. White makes the election to expense the maximum amount under $ 179, and wants to take any additional first-year depreciation allowed. No election is made to use the straight-line method. Determine the total deductions in calculating taxable income related to the machine for 2020 assuming White has taxable income of $800,000. O a. 588,598 O b.$301,159 OC. $568,574 od. $620,000 O...

  • Weston acquires a new office machine (seven-year class asset) on August 2, 2017, for $75,000. This...

    Weston acquires a new office machine (seven-year class asset) on August 2, 2017, for $75,000. This is the only asset Weston acquired during the year. He does not elect immediate expensing under § 179. He claims the maximum additional first-year depreciation deduction. On September 15, 2019, Weston sells the machine. Determine Weston's cost recovery for 2017, 2018, and 2019.

  • 4. MC.08.057 Bonnie purchased a new business asset (five-year property) on March 10, 2019, at a...

    4. MC.08.057 Bonnie purchased a new business asset (five-year property) on March 10, 2019, at a cost of $30,000. She also purchased a new business asset (seven-year property) on November 20, 2019, at a cost of $13,000. Bonnie did not elect to expense either of the assets under 5 179, nor did she elect straight-line cost recovery. Bonnie takes additional first-year depreciation. Determine the cost recovery deduction for 2019 for these assets. a. $9,586 b. $7,858 Oc. $43,000 Od. $21,915...

  • Weston acquires a new office machine (seven-year class asset) on August 2, 2017, for $75,000. This...

    Weston acquires a new office machine (seven-year class asset) on August 2, 2017, for $75,000. This is the only asset Weston acquired during the year. He does not elect immediate expensing under § 179. He claims the maximum additional first-year depreciation deduction. On September 15, 2019, Weston sells the machine. Click here to access the depreciation tables in the textbook. If required, round your answers to the nearest dollar. a. Determine Weston’s cost recovery for 2017 and 2018. b. Determine...

  • Problem 8-34 (LO. 2) Weston acquires a new office machine (seven-year class asset) on August 2,...

    Problem 8-34 (LO. 2) Weston acquires a new office machine (seven-year class asset) on August 2, 2017, for $75,000. This is the only asset Weston acquired during the year. He does not elect immediate expensing under § 179. He claims the maximum additional first-year depreciation deduction. On September 15, 2019, Weston sells the machine. Click here to access the depreciation tables in the textbook. If required, round your answers to the nearest dollar. a. Determine Weston's cost recovery for 2017...

  • Betsy acquired a new network system on June 5, 2018 (5-year class property), for $61,000. She...

    Betsy acquired a new network system on June 5, 2018 (5-year class property), for $61,000. She expects taxable income from the business will always be about $175,000 without regard to the §179 election. Betsy will elect §179 expensing. She also acquired 7-year property in July 2018 for $350,000. Determine Betsy’s maximum cost recovery deduction with respect to her purchases in 2018

  • 69. Audra acquires the following new five-year class property in 2019: Asset Acquisition Date Cost A...

    69. Audra acquires the following new five-year class property in 2019: Asset Acquisition Date Cost A В с Total January 10 July 5 November 15 $ 106,000 70,000 1,950,000 $ 2.126.000 Audra elects Code Section 179 treatment for Asset C. Her taxable income from her business would not create a limitation for purposes of the Code Section 179 deduction. Audra does not claim any available additional first-year depreciation deduction. Determine her total cost recovery deduction (including the Code Section 179...

  • Exercise 8-21 (Algorithmic) (LO. 2) Eudid acquires a 7-year dass asset on May 9, 2017, for...

    Exercise 8-21 (Algorithmic) (LO. 2) Eudid acquires a 7-year dass asset on May 9, 2017, for $256,400. Eudid does not elect immediate expensing under 5 179. He does not claim any available additional first-year depreciation. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Eudid's cost recovery deduction is $ E x for 2017 and $ x for 2018. Feedback Check My Work Under the modifiedlaccelerated cost recovery...

  • Problem 8-8 Modified Accelerated Cost Recovery System (MACRS), Election to Expense, Listed Property, Limitation on Depreciation...

    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...

  • 25. Lo.2, 3 Diana acquires, for $65,000, and places in service a 5-year class asset on...

    25. Lo.2, 3 Diana acquires, for $65,000, and places in service a 5-year class asset on December 19, 2019. It is the only asset that Diana acquires during 2019 Diana does not elect immediate expensing under § 179. She elects additional first- year deprecation. Calculate Diana's total cost recovery deduction for 2019 26

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT