A client placed $4,000,000 of five-year equipment into service in February 2018. Because taxable income is...
A client placed $4,000,000 of five-year equipment into service in February 2018. Because taxable income is more than $7,000,000, he would like to maximize this year's depreciation deduction. The largest deduction allowed is
A) $2,000,000.
B) $2,500,000.
C) $4,000,000.
D) $7,000,000.
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A client placed $4,000,000 of five-year equipment into service
in February 2018. Because taxable income is...
Various equipment was purchased and placed in service this year in the amount of $3,000,000. Taxable...
Various equipment was purchased and placed in service this year in the amount of $3,000,000. Taxable income before the 179 deduction was $400,000, Indicate the amount of deduction under the Section 179 election, $570,000 a b. No 179 election is allowed c. $1,020,000 $450,000 d. $2,550,000
Land was purchased for $150,000 and placed in service during the current year. Taxable income before...
Land was purchased for $150,000 and placed in service during the current year. Taxable income before the 179 deduction was $300,000. Indicate the amount of a deduction under the Section 179 election a $150,000 $300,000 b. $30,000 d. No 179 election is allowed.
Ruston Company had Net Income for 2018 of $6,200,000. The firm invested $4,000,000 in manufacturing equipment...
Ruston Company had Net Income for 2018 of $6,200,000. The firm invested $4,000,000 in manufacturing equipment during 2018. The equipment is being depreciated over five years using straight-line depreciation, starting in 2018. Assuming no other adjustments to cash flow than those mentioned here, create a statement of cash flows for 2018 with amounts in thousands. What is the Net Cash Flow in 2018? Please specify your answer in the same units as the statement of cash flows.
QUESTION 10 Chaz Corporation has taxable income in 2020 of 5312,000 for purposes of computing the...
QUESTION 10 Chaz Corporation has taxable income in 2020 of 5312,000 for purposes of computing the 5179 expense and acquired the following assets during the year Basis $780.000 Asset Office furniture Computer equipment Delivery truck Qualified improvement property Total Placed in Service September 12 February 10 August 21 September 30 930,000 68,000 1.490.000 $3.268,000 What is the maximum total depreciation that Chazmay deduct in 20207 QUESTION 11 Acor Construction (calendar year end corporation has had rapid expansion during the last...
QUESTION 10 Chaz Corporation has taxable income in 2020 of $312,000 for purposes of computing the...
QUESTION 10 Chaz Corporation has taxable income in 2020 of $312,000 for purposes of computing the 5179 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 $780,000 930,000 68,000 1.520.000 $3,298,000 What is the maximum total depreciation that Chaz may deduct in 20207 QUESTION 11 2 pc Acom Construction (calendar year end C-corporation) has had rapid expansion...
Problem 5-47 (Algorithmic) (LO. 8) On February 15, 2018, Leo purchased and placed in service a...
Problem 5-47 (Algorithmic) (LO. 8) On February 15, 2018, Leo purchased and placed in service a new car that cost $66,600. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any $ 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain autom.biles. a. What MACRS convention applies to the new car?...
Tax Problem On February 2, 2018, Katie purchased and placed in service a new $18,500 car....
Tax Problem On February 2, 2018, Katie purchased and placed in service a new $18,500 car. The car was used 65% for business, 5% for production of income, and 30% for personal use in 2018. In 2019, the usage changed to 40% for business, 15% for production of income, and 45% for personal use. Katie did not elect immediate expensing under § 179. She elects not to take additional first-year depreciation. If required, round your answers to the nearest dollar....
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....
In November, 2018, Creative Corn Products, a calendar year taxpayer, placed into service its only equipment...
In November, 2018, Creative Corn Products, a calendar year taxpayer, placed into service its only equipment during the year. The equipment, which was purchased used, cost $2,615,000. All of the equipment qualified as 5 year property under MACRS. Assuming that the equipment is eligible for §179 but NOT eligible for 100% bonus depreciation, the maximum deduction that the taxpayer may claim with respect to the equipment is a. $510,000 b. $1,231,000 c. $971,500. d. $885,000. e. $306,000. f. $2,615,000 g...
Woolard Supplies (a sole-proprietorship) has taxable income in 2018 of $240,000 before any depreciation deductions (§179,...
Woolard Supplies (a sole-proprietorship) has taxable income in 2018 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture had been used previously by Liz Woolard (the owner of the business) before it was placed in service by the business. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Asset...
Various equipment was purchased and placed in service this year in the amount of $3,000,000. Taxable income before the 179 deduction was $400,000, Indicate the amount of deduction under the Section 179 election, $570,000 a b. No 179 election is allowed c. $1,020,000 $450,000 d. $2,550,000
Land was purchased for $150,000 and placed in service during the current year. Taxable income before the 179 deduction was $300,000. Indicate the amount of a deduction under the Section 179 election a $150,000 $300,000 b. $30,000 d. No 179 election is allowed.
QUESTION 10 Chaz Corporation has taxable income in 2020 of 5312,000 for purposes of computing the 5179 expense and acquired the following assets during the year Basis $780.000 Asset Office furniture Computer equipment Delivery truck Qualified improvement property Total Placed in Service September 12 February 10 August 21 September 30 930,000 68,000 1.490.000 $3.268,000 What is the maximum total depreciation that Chazmay deduct in 20207 QUESTION 11 Acor Construction (calendar year end corporation has had rapid expansion during the last...
QUESTION 10 Chaz Corporation has taxable income in 2020 of $312,000 for purposes of computing the 5179 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 $780,000 930,000 68,000 1.520.000 $3,298,000 What is the maximum total depreciation that Chaz may deduct in 20207 QUESTION 11 2 pc Acom Construction (calendar year end C-corporation) has had rapid expansion...
Problem 5-47 (Algorithmic) (LO. 8) On February 15, 2018, Leo purchased and placed in service a new car that cost $66,600. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any $ 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain autom.biles. a. What MACRS convention applies to the new car?...
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