Blanco Corporation (a calendar-year taxpayer) purchased $2,200,000 of used manufacturing equipment in July, $400,000 of used...

Blanco Corporation (a calendar-year taxpayer) purchased $2,200,000 of used manufacturing equipment in July, $400,000 of used computer equipment in August, and an office building for $850,000 (of which $170,000 was for the land) in November. Compute Blanco’s depreciation deduction for 2017.

Expert Solution

Personal property	179 election	MACRS Basis	Depreciation Rate	Depreciation Amount
Equipment	-	2,200,000	14.29%	314,380.00
Computer	-	400,000	20.00%	80,000.00

Depreciation	-			394,380.00

Real property		Basis	Depreciation Rate	Depreciation Amount
Building		680,000	0.3210%	2,182.80

Depreciation				2,182.80

Total depreciation expense				396,562.80

ekkarill92 answered 2 years ago

Q 1: On July 8, 2016, Celtic corporation, a calendar year taxpayer, purchased an apartment building...

Q 1: On July 8, 2016, Celtic corporation, a calendar year taxpayer, purchased an apartment building for $1,500,000, of which $250,000 was allocatble to the land. On September 10, 2018, Celtic sells the building. Give the corporation's allowable depreciation deductions for the apartment building both for the year of purchase (2016) and for the year of sale (2018). Q 2: In January of 201 8, Matt purchased a Mercedes sedan for $95,000 to be used in his business as a...

On January 1, Tulip Corporation (a calendar year taxpayer) has accumulated E & P of $400,000....

On January 1, Tulip Corporation (a calendar year taxpayer) has accumulated E & P of $400,000. Its current E & P for the year is $120,000 (before considering dividend distributions). On the last day of the year, Tulip distributes $600,000 ($150,000 each) to its four equal shareholders, Anne, Andrew, Tom and Terry. Anne has a basis in her stock of $65,000, while Andrew’s basis is $120,000. Tom has a $5,000 basis in his stick while Terry has a $80,000 basis....

G, a calendar year taxpayer, purchased $1,496,000 of equipment on March 23, its only purchase for...

G, a calendar year taxpayer, purchased $1,496,000 of equipment on March 23, its only purchase for the year. If the equipment is 7-year property, how much are first and second year MACRS depreciation? Assume Section 179 and bonus do not apply. Group of answer choices First year $213,778; second year $366,370 First year $213,778; second year $183,185 First year $106,889; second year $340,193 First year $106,889; second year $366,370

Nicki Corporation (a calendar year corporation) purchased a new machine (7 year property) in July 2015...

Nicki Corporation (a calendar year corporation) purchased a new machine (7 year property) in July 2015 for $20,000. Nicko did not elect section 179 for this asset but did claim 50% bonus depreciation. In November 2018, Nicko sells the machine. What is the machines adjusted basis at the date of sale?

On January 2, 2018, the Mulberry Street Corporation (a calendar year corporation) purchased heavy equipment in...

On January 2, 2018, the Mulberry Street Corporation (a calendar year corporation) purchased heavy equipment in the amount of $550,000. It is expected to be used for 10 years, with a residual value at the end of that time of $70,000. Expenditures required to place the asset in service amounted to $120,000. The company also purchased a patent at a cost of $80,000 on July 1, 2018. It is expected to be used for six years, with no value at...

Taxpayer (“T”) a 59 year-old calendar year individual taxpayer purchased an annuity from an insurance company...

Taxpayer (“T”) a 59 year-old calendar year individual taxpayer purchased an annuity from an insurance company for $100,000 in 2019. The terms of the annuity were that the company would pay T $5,000 a year to T for the rest of T’s life. How much income will T include in T’s personal income tax return as a result of receiving the $5,000 payment in 2020? _____________ In 2050? ______________

Oliver, a calendar-year taxpayer, owns 50 shares of Copper Corporation stock, which was purchased two years...

Oliver, a calendar-year taxpayer, owns 50 shares of Copper Corporation stock, which was purchased two years ago for $30,000. Oliver sells all 50 shares on December 31, of the current year (2019), for $20,000 and on January 15 (2020), of the following year, purchases 25 shares of Copper Corporation stock. Oliver's recognized loss will be (LABEL AND SHOW ALL WORK WITH CALCULATIONS) A) $0 B) $5,000. C) $7,500. D) $10,000.

6. On July 1 of year 1, Riverside, Corp. (RC), a calendar-year taxpayer, acquired the assets...

6. On July 1 of year 1, Riverside, Corp. (RC), a calendar-year taxpayer, acquired the assets of another business in a taxable acquisition. When the purchase price was allocated to the assets purchased, RC determined it had a basis of $1,300,000 in goodwill for both book and tax purposes. At the end of year 1, RC determined that the goodwill had not been impaired during the year. In year 2, however, RC concluded that $200,000 of the goodwill had been...

On December 10 of the current year, Gonzalez Corporation (a calendar-year taxpayer) accrues an obligation for...

On December 10 of the current year, Gonzalez Corporation (a calendar-year taxpayer) accrues an obligation for a $125,000 bonus to Latasha, a sales representative who had had an outstanding year. Latasha owns no Gonzalez Corporation stock. The bonus is paid on May 5 of the next year. What is Gonzalez's deduction for the current year? What is Gonzalez's deduction for next year? Explain you answer.

Purple Corporation, an exterminating company, is a calendar year taxpayer. It contracts to provide service to...

Purple Corporation, an exterminating company, is a calendar year taxpayer. It contracts to provide service to homeowners once a month under a one-, two-, or three-year contract. On April 1 of the current year, the company sold a customer a one-year contract for $120. How much of the $120 is taxable in the current year if the company is an accrual basis taxpayer. If the $120 is payment on a two-year contract, how much is taxed in the year the...

Question