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 3 years ago

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