Question
In: Accounting
Taxpayer places in service new equipment for $800,000 (7 year property) on August 15, and elects...
Taxpayer places in service new equipment for $800,000 (7 year property) on August 15, and elects immediate expensing of the maximum amount:
2016 2018
Cost of equipment
179 deduction
additional first year depreciation
amount subject to MACRS (MACRS rate .1429)
Total cost recovery allowed in 2016
What is same facts but under 2018 law?
Solutions
ekkarill92 answered 6 months agoRelated Solutions
11) In May of 2019, taxpayer acquires and places in service machinery (seven-year property) with an...
11)
In May of 2019, taxpayer acquires and places in service
machinery (seven-year property) with an initial basis of
$2,670,000. Taxpayer places no other property into service during
the year and has net income before deductions of $20 million
dollars. Assume the taxpayer elects not to deduction bonus
depreciation. Determine the total cost recovery deduction including
section 179 immediate expensing and MACRS depreciation the taxpayer
may deduct for 2019.
FRO THE TAX YEAR 2019
A) $2,670,000
B) $1,255,785
C) $484,395...
Margo, a calendar year taxpayer, paid $580,000 for new machinery (seven-year recovery property) placed in service...
Margo, a calendar year taxpayer, paid $580,000 for new machinery
(seven-year recovery property) placed in service on August 1, 2017.
Use Table 7-2. Assuming that the machinery was the only tangible
property placed in service during the year, compute Margo’s maximum
cost recovery deduction. How would your answer to part a change if
the machinery was purchased in 2018 instead of 2017? COnsider
section179, bonus and MACRS depreciation.
. A taxpayer purchased and placed in service during the year a $100,000 piece of equipment....
. A taxpayer purchased and placed in service during
the year a $100,000 piece of equipment. The equipment is 7-year
property. The first-year depreciation for 7-year property is
14.29%. There is an allowable Section 179 limit in the current year
of $25,000. What amount is the maximum allowable depreciation?
On June 15, 2018, Chang purchases $2,537,000 of equipment (7-year property) for use in her business....
On June 15, 2018, Chang purchases $2,537,000 of equipment
(7-year property) for use in her business. It is her only purchase
of business property in 2018. Chang has taxable income from her
business of $2,500,000 before any cost recovery.
Click here to access depreciation Table 8-2.
a. Assuming Chang does not elect
Section 179 and elects out of bonus depreciation, what is her total
2018 cost recovery?
$
b. Assuming Chang elects the maximum
Section 179 deduction allowable and elects out of...
New lithographic equipment, acquired at a cost of $800,000 at the beginning of a fiscal year,...
New lithographic equipment, acquired at a cost of $800,000 at
the beginning of a fiscal year, has an estimated useful life of
five years and an estimated residual value of $90,000. The manager
requested information regarding the effect of alternative methods
on the amount of depreciation expense each year. On the basis of
the data presented to the manager, the double-declining-balance
method was selected.
In the first week of the fifth year, the equipment was sold for
$134,570.
Required:
1....
1. Fariq purchases and places in service in 2017 personal property costing? $2,051,000. The property does...
1. Fariq purchases and places in service in 2017 personal
property costing? $2,051,000. The property does not qualify for
bonus depreciation. What is the maximum Sec. 179 deduction that
Fariq can? deduct, ignoring any taxable income? limitation?
A. $479,000
B. ?$510,000
C. $0
D. ?$489,000
2. Chahana acquired and placed in service? $665,000 of equipment
on August? 1, 2017 for use in her sole proprietorship. The
equipment is 5?year recovery property. No other acquisitions are
made during the year. Chahana...
1-Maple Company purchases new equipment (7-year MACRS property) on January 10, 2018, at a cost of...
1-Maple Company purchases new equipment (7-year MACRS property)
on January 10, 2018, at a cost of $430,000. Maple also purchases
new machines (5-year MACRS property) on July 19, 2018 at a cost of
$290,000. Maple wants to maximize its MACRS deductions; assume no
taxable income limitations apply. What is Maple's total MACRS
deduction for 2018?
a. $119,447.
b. $560,000.
c. $617,148.
d. $720,000.
2-Ellie (a single taxpayer) is the owner of ABC, LLC. The LLC (a
sole proprietorship) reports QBI...
New lithographic equipment, acquired at a cost of $800,000 on March 1 of Year 1 (beginning...
New lithographic equipment, acquired at a cost of $800,000 on
March 1 of Year 1 (beginning of the fiscal year), has an estimated
useful life of five years and an estimated residual value of
$90,000. The manager requested information regarding the effect of
alternative methods on the amount of depreciation expense each
year.
On March 4 of Year 5, the equipment was sold for $135,000.
Required:
1.
Determine the annual
depreciation expense for each of the estimated five years of...
New lithographic equipment, acquired at a cost of $800,000 on March 1 of Year 1 (beginning...
New lithographic equipment, acquired at a cost of $800,000 on
March 1 of Year 1 (beginning of the fiscal year), has an estimated
useful life of five years and an estimated residual value of
$90,000. The manager requested information regarding the effect of
alternative methods on the amount of depreciation expense each
year.
On March 4 of Year 5, the equipment was sold for $135,000.
Required:
1.
Determine the annual
depreciation expense for each of the estimated five years of...
A project requires $178,077 of equipment that is classified as 7-year property. What is the book...
A project requires $178,077 of equipment that is classified as
7-year property. What is the book value of this asset at the end of
year 5 given the following MACRS depreciation allowances, starting
with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and
4.46 percent?
Enter your answer rounded off to two decimal points.
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