Exercise 8-26 (LO. 3) McKenzie purchased qualifying equipment for his business that cost $212,000 in 2018. The taxable i...
Exercise 8-26 (LO. 3)
McKenzie purchased qualifying equipment for his business that cost $212,000 in 2018. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction.
If an amount is zero, enter "0".
a. McKenzie's § 179 expense deduction is $ for 2018. His § 179 carryover to 2019 is $.
b. How would your answer change if McKenzie
decided to use additional first-year (bonus) depreciation on the
equipment? Hint: See Concept Summary 8.5.
McKenzie's § 179 expense deduction is $ for 2018. His § 179
carryover to 2019 is $.
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Exercise 8-26 (LO. 3) McKenzie purchased qualifying equipment for his business that cost $212,000 in 2018. The taxable i...
Exercise 8-26 (LO. 3) McKenzie purchased qualifying equipment for his business that cost $212,000 in 2019....
Exercise 8-26 (LO. 3) McKenzie purchased qualifying equipment for his business that cost $212,000 in 2019. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's § 179 expense deduction for 2019 and any carryover to 2020. 212,000 X § 179 expense deduction for 2019: $ 5,600 S 179 carryover to 2020: $ х b. How would your answer change if McKenzie...
Exercise 8-26 (Algorithmic) (LO. 3) Mckenzie purchased qualifying equipment for his business that cost $473,800 in...
Exercise 8-26 (Algorithmic) (LO. 3) Mckenzie purchased qualifying equipment for his business that cost $473,800 in 2019. The taxable income of the business for the year is $11,200 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's $ 179 expense deduction for 2019 and any carryover to 2020. $ 179 expense deduction for 2019: $ 5,600 X $ 179 carryover to 2020: $ 206,400 X b. How would your answer change if...
Exercise 8-26 (Algorithmic) (LO. 3) Mckenzie purchased qualifying equipment for his business that cost $473,800 in...
Exercise 8-26 (Algorithmic) (LO. 3) Mckenzie purchased qualifying equipment for his business that cost $473,800 in 2019. The taxable income of the business for the year is $114,900 before consideration of any $ 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's 5 179 expense deduction for 2019 and any carryover to 2020. $ 179 expense deduction for 2019: $ $ 179 carryover to 2020: $ b. How would your answer change if McKenzie decided to use...
Tax Drill - Section 179 For his business, McKenzie purchased qualifying equipment that cost $212,000 in...
Tax Drill - Section 179 For his business, McKenzie purchased qualifying equipment that cost $212,000 in 2019. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. If an amount is zero, enter "0" a. McKenzie's § 179 expense deduction is $ 5,600 for 2019. His § 179 carryover to 2020 is $ 206,400 b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment?...
19. On May 26, 2014, Jamal purchased machinery for $30,000 to be used in his business....
19. On May 26, 2014, Jamal purchased machinery for $30,000 to be used in his business. He did not elect to expense the equipment under $179 or the bonus. On October 10, 2018, he sells the machinery to a scrap metal dealer. What is his cost recovery deduction for 2018 rounded to the nearest dollar? A) $0. B) $1,340. C) $2,679. D) $4,287. E) None of the above.
depreciation? Lo 10.3 58. Assume that Timberline Corporation has 2018 taxable income of $240 LO 10-3...
depreciation? Lo 10.3 58. Assume that Timberline Corporation has 2018 taxable income of $240 LO 10-3 purposes of computing the $179 expense. It acquired the following assets in 2018: Asset Purchase Date Basis Furniture (7-year) Computer equipment (5-year) Copier (5-year) Machinery (7-year) Total December 1 $450,000 90,000 30,000 May 22480,000 $1,050,000 February 28 July 15 CHAPTER 1O Property Acquisition and Cost Recov a) What is the maximum amount of $179 expense Timberline may deduct for 2018? b) What would Timberline's...
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...
Problem 8-43 (LO. 2, 3, 9) On June 5, 2018, Javier Sanchez purchased and placed in...
Problem 8-43 (LO. 2, 3, 9) On June 5, 2018, Javier Sanchez purchased and placed in service a new 7-year class asset costing $560,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2018, his business generated a net income of $945,780 before any § 179 immediate expense election. Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular...
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2018. In the...
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2018. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2018: Date Placed in Service 02/03/2018 Asset Cost Office furniture 150,000 Machinery Used delivery truck* 07/22/2018 1,560,000 40,000 08/17/2018 Not considered a luxury automobile. During 2018, Karane was very successful (and had no S179 limitations) and decided to acquire more assets in 2019...
During 2018, William purchases the following capital assets for use in his catering business: New passenger...
During 2018, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30) $52,900 Baking equipment (June 30) 15,870 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 5-year recovery period), and he also uses the MACRS accelerated method to calculate depreciation but elects out of bonus depreciation. Assume he has adequate...
Exercise 8-26 (LO. 3) McKenzie purchased qualifying equipment for his business that cost $212,000 in 2019. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's § 179 expense deduction for 2019 and any carryover to 2020. 212,000 X § 179 expense deduction for 2019: $ 5,600 S 179 carryover to 2020: $ х b. How would your answer change if McKenzie...
Exercise 8-26 (Algorithmic) (LO. 3) Mckenzie purchased qualifying equipment for his business that cost $473,800 in 2019. The taxable income of the business for the year is $11,200 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's $ 179 expense deduction for 2019 and any carryover to 2020. $ 179 expense deduction for 2019: $ 5,600 X $ 179 carryover to 2020: $ 206,400 X b. How would your answer change if...
Exercise 8-26 (Algorithmic) (LO. 3) Mckenzie purchased qualifying equipment for his business that cost $473,800 in 2019. The taxable income of the business for the year is $114,900 before consideration of any $ 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's 5 179 expense deduction for 2019 and any carryover to 2020. $ 179 expense deduction for 2019: $ $ 179 carryover to 2020: $ b. How would your answer change if McKenzie decided to use...
Tax Drill - Section 179 For his business, McKenzie purchased qualifying equipment that cost $212,000 in 2019. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. If an amount is zero, enter "0" a. McKenzie's § 179 expense deduction is $ 5,600 for 2019. His § 179 carryover to 2020 is $ 206,400 b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment?...
19. On May 26, 2014, Jamal purchased machinery for $30,000 to be used in his business. He did not elect to expense the equipment under $179 or the bonus. On October 10, 2018, he sells the machinery to a scrap metal dealer. What is his cost recovery deduction for 2018 rounded to the nearest dollar? A) $0. B) $1,340. C) $2,679. D) $4,287. E) None of the above.
depreciation? Lo 10.3 58. Assume that Timberline Corporation has 2018 taxable income of $240 LO 10-3 purposes of computing the $179 expense. It acquired the following assets in 2018: Asset Purchase Date Basis Furniture (7-year) Computer equipment (5-year) Copier (5-year) Machinery (7-year) Total December 1 $450,000 90,000 30,000 May 22480,000 $1,050,000 February 28 July 15 CHAPTER 1O Property Acquisition and Cost Recov a) What is the maximum amount of $179 expense Timberline may deduct for 2018? b) What would Timberline's...
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2018. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2018: Date Placed in Service 02/03/2018 Asset Cost Office furniture 150,000 Machinery Used delivery truck* 07/22/2018 1,560,000 40,000 08/17/2018 Not considered a luxury automobile. During 2018, Karane was very successful (and had no S179 limitations) and decided to acquire more assets in 2019...
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