Homework Answers
| a) | |||||||
| Asset | Date Placed in Service | Quarter | Original Basis | Rate | Depreciation | ||
| Machinery(7 years) | 25-Oct | 2nd | $ 84,000.00 | 17.85% | $ 14,994.00 | ||
| Computer equipment (5 years) | 3-Feb | 3rd | $ 24,000.00 | 15% | $ 3,600.00 | ||
| Delivery truck (5 years) | 17-Mar | 3rd | $ 37,000.00 | 15% | $ 5,550.00 | ||
| Furniture (7 years) | 22-Apr | 4th | $ 164,000.00 | 3.57% | $ 5,854.80 | ||
| $ 309,000.00 | $ 29,998.80 | ||||||
| The bonus depreciation percentage for qualified property that a taxpayer acquired after Jan. 1, 2018, remains at 100 percent,since bonus and 179 is not applicaple so we ignore this asset | |||||||
| a) Allowable MACRS depreciation | $ 29,998.80 | ||||||
| b) | |||||||
| Asset | Date Placed in Service | Quarter | Original Basis | Bonus Depreciation 50% | Remaining Basis | Rate | Depreciation |
| Machinery(7 years) | 25-Oct | 2nd | $ 84,000.00 | $ 42,000.00 | $ 42,000.00 | 17.85% | $ 7,497.00 |
| Computer equipment (5 years) | 3-Feb | 3rd | $ 24,000.00 | $ 12,000.00 | $ 12,000.00 | 15% | $ 1,800.00 |
| Delivery truck (5 years) | 17-Mar | 3rd | $ 37,000.00 | $ 18,500.00 | $ 18,500.00 | 15% | $ 2,775.00 |
| Furniture (7 years) | 22-Apr | 4th | $ 164,000.00 | $ 164,000.00 | $ - | 3.57% | $ - |
| Qualified improvement property (100% bonus depreciation) | $ 440,000.00 | ||||||
| $ 749,000.00 | $ 12,072.00 | ||||||
| b) Allowable MACRS depreciation | $ 12,072.00 | ||||||
Add Answer to:
Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ign...
Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus...
Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.) Date Placed Original Asset in Service Basis Machinery October 25 $ 112,000 Computer equipment February 3 41,500 Used delivery truck* August 17 54,500 Furniture April 22 202,500 *The delivery truck is not a luxury automobile. b. What is the allowable MACRS depreciation on Evergreen’s property in the current year if Evergreen does not...
Assume that ACW Corporation has 2018 taxable income of $1,020,000 for purposes of computing the §179...
Assume that ACW Corporation has 2018 taxable income of $1,020,000 for purposes of computing the §179 expense. The company acquired the following assets during 2018 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5). Assume that the qualified improvement property has satisfied the conditions mentioned under Section 179(f)(2) Asset Placed in Service Basis Machinery Computer equipment Delivery truck Qualified improvement property Total 12-Sep 10-Feb 21-Aug 2-Apr $ 472,000 72,800 95,000 1,382,000 $2,021,000 a. What is the...
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...
On May 12 of year 1, Javier purchased a building, including the land it was on,...
On May 12 of year 1, Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,495,000; $450,000 was allocated to the basis of the land and the remaining $1,045,000 was allocated to the basis of the building. (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.) C. Assume the...
Erwin Company, a calendar year taxpayer, made only two purchases of depreciable personalty this year. The first purchase...
Erwin Company, a calendar year taxpayer, made only two purchases
of depreciable personalty this year. The first purchase was
five-year recovery property costing $312,800, and the second
purchase was seven-year recovery property costing $574,000. Use
Table 7-2 and Appendix 7-A.
Compute Erwin’s first-year MACRS depreciation with respect to
the personalty assuming that the first purchase occurred on
February 2, and the second purchase occurred on June 18.
Compute Erwin’s first-year MACRS depreciation with respect to
the personalty assuming that the...
Lina purchased a new car for use in her business during 2019. The auto was the...
Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn’t want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) a) The...
Required information [The following information applies to the questions displayed below.] Lina purchased a new car...
Required information [The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn’t want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all):...
Lina purchased a new car for use in her business during 2019. The auto was the...
Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn’t want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) Table 1...
. EXHIBIT 10-10 Automobile Depreciation Limits Year Placed in Service 2019* 2018 2017 2016 Recovery Year...
.
EXHIBIT 10-10 Automobile Depreciation
Limits
Year Placed in
Service
2019*
2018
2017
2016
Recovery Year 1
10,000**
10,000*
3,160*
3,160*
Recovery Year 2
16,000
16,000
5,100
5,100
Recovery Year 3
9,600
9,600
3,050
3,050
Recovery Year 4 and after
5,760
5,760
1,875
1,875
TABLE 2a MACRS Mid-Quarter Convention: For
property placed in service during the first quarter
Depreciation Rate for
Recovery Period
5-Year
7-Year
Year 1
35.00%
25.00%
Year 2
26.00
21.43
Year 3
15.60
15.31
Year 4
11.01...
Lina purchased a new car for use in her business during 2019. The auto was the...
Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn’t want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all) a. The vehicle cost $$31,600 and business use is 100 percent...
Assume that ACW Corporation has 2018 taxable income of $1,020,000 for purposes of computing the §179 expense. The company acquired the following assets during 2018 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5). Assume that the qualified improvement property has satisfied the conditions mentioned under Section 179(f)(2) Asset Placed in Service Basis Machinery Computer equipment Delivery truck Qualified improvement property Total 12-Sep 10-Feb 21-Aug 2-Apr $ 472,000 72,800 95,000 1,382,000 $2,021,000 a. What is the...
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...
On May 12 of year 1, Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,495,000; $450,000 was allocated to the basis of the land and the remaining $1,045,000 was allocated to the basis of the building. (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.) C. Assume the...
Erwin Company, a calendar year taxpayer, made only two purchases
of depreciable personalty this year. The first purchase was
five-year recovery property costing $312,800, and the second
purchase was seven-year recovery property costing $574,000. Use
Table 7-2 and Appendix 7-A.
Compute Erwin’s first-year MACRS depreciation with respect to
the personalty assuming that the first purchase occurred on
February 2, and the second purchase occurred on June 18.
Compute Erwin’s first-year MACRS depreciation with respect to
the personalty assuming that the...
.
EXHIBIT 10-10 Automobile Depreciation
Limits
Year Placed in
Service
2019*
2018
2017
2016
Recovery Year 1
10,000**
10,000*
3,160*
3,160*
Recovery Year 2
16,000
16,000
5,100
5,100
Recovery Year 3
9,600
9,600
3,050
3,050
Recovery Year 4 and after
5,760
5,760
1,875
1,875
TABLE 2a MACRS Mid-Quarter Convention: For
property placed in service during the first quarter
Depreciation Rate for
Recovery Period
5-Year
7-Year
Year 1
35.00%
25.00%
Year 2
26.00
21.43
Year 3
15.60
15.31
Year 4
11.01...
Most questions answered within 3 hours.
-
what's the danger in the fact that the market value of a stock
is based on...
asked 7 minutes ago -
Describe how do you feel about the post below and
why?
Listening to the podcast reaffirmed...
asked 16 minutes ago -
To start an avalanche on a mountain slope, an artillery shell is
fired with an initial...
asked 29 minutes ago -
The population of bacteria in a culture can be modeled by P left
parenthesis t right...
asked 33 minutes ago -
Which factors can prevent permanent fixation of an allele (i.e.
maintain genetic diversity)? Hint: You're going...
asked 35 minutes ago -
Compare a two-year bond with two successive one-year bonds in a
situation in which an investor...
asked 56 minutes ago -
Chapter 6
Search the internet and find a newspaper example of a price
ceiling, price floor...
asked 51 minutes ago -
Sarah Bates, calendar year taxpayer, started a new business on
October 8th. A number of start-up...
asked 52 minutes ago -
You and your friends are playing in the swimming pool with a
40-cm-diameter beach ball. How...
asked 57 minutes ago -
Patterson Development sometimes sells property on an installment
basis. In those cases, Patterson reports income in...
asked 1 hour ago -
please help with these two example, i want to double check my
work. thanks
1.
sum:=0...
asked 1 hour ago -
in the formation of 1.0 mole of the following crystalline solids
from the gaseous ions most...
asked 1 hour ago