Question

In: Accounting

Chaz Corporation has taxable income in 2017 of 406000 for purposes of cupmuting the $179 expense...

Chaz Corporation has taxable income in 2017 of 406000 for purposes of cupmuting the $179 expense and acquired the following assets, placed in service, basis-Computer furniture, Sept 12, 1189000, Computer equipment, Feb 10, 916000, delivery truck, Aug 21, 58000 for a total basis of 2154000. What is the mazimum total depreciation expense that Chaz may deduct in 2017?

Solutions

Expert Solution

Description Amount
Property placed in service $   2,163,000
Threshold under section 179 (b)(2) $ (2,030,000)
Amount more than threshold $       133,000
Maximum 179 expense before phase out 179(b)(1) $       510,000
Less: Amount more than threshold $     (133,000)
Maximum 179 expense after phase out $       377,000
Particulars Purchase price - a 179 expense - b Remaining basis - c = a-b Bonus depreciation - d = c/2 Remaining basis - e = c-d Depreciation rate - f Depreciation expense - g = e*f
Furniture - 7 Years $             1,189,000 $             377,000 $                                812,000 $                                       406,000 $                                406,000 14.29% $                                               58,017
Computer - 5 Years $                 916,000 $                                916,000 $                                       458,000 $                                458,000 20% $                                               91,600
Delivery truck - 5 Years $                   58,000 $                                  58,000 $                                         29,000 $                                  29,000 20% $                                                 5,800
179 Expense $                                            377,000
Bonus depreciation $                                       893,000 $                                            893,000
Total depreciation expense $                                         1,425,417

Related Solutions

Chaz Corporation has taxable income in 2017 of $361,000 for purposes of computing the §179 expense...
Chaz Corporation has taxable income in 2017 of $361,000 for purposes of computing the §179 expense and acquired the following assets during the year: Placed in Asset Service Basis Office furniture September 12 $ 1,200,000 Computer equipment February 10 920,000 Delivery truck August 21 60,000 Total $ 2,180,000 What is the maximum total depreciation expense that Chaz may deduct in 2017?
Chaz Corporation has taxable income in 2017 of $356,000 for purposes of computing the §179 expense...
Chaz Corporation has taxable income in 2017 of $356,000 for purposes of computing the §179 expense and acquired the following assets during the year: Placed in Asset Service Basis Office furniture September 12 $ 1,240,000 Computer equipment February 10 928,000 Delivery truck August 21 64,000 Total $ 2,232,000 What is the maximum total depreciation expense that Chaz may deduct in 2017? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your answer to the nearest...
Chaz Corporation has taxable income in 2017 of $406,000 for purposes of computing the §179 expense...
Chaz Corporation has taxable income in 2017 of $406,000 for purposes of computing the §179 expense and acquired the following assets during the year: Placed in Asset Service Basis Office furniture September 12 $ 1,180,000 Computer equipment February 10 916,000 Delivery truck August 21 58,000 Total $ 2,154,000 What is the maximum total depreciation expense that Chaz may deduct in 2017? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your answer to the nearest...
Chaz Corporation has taxable income in 2019 of $364,000 for purposes of computing the §179 expense...
Chaz Corporation has taxable income in 2019 of $364,000 for purposes of computing the §179 expense and acquired the following assets during the year: Asset Placed in Service Basis Office Furniture September 12 $701,000 Computer Equipment February 10 $932,000 Delivery Truck August 21 $66,000 Qualified improvement September 30 $1,533,000 Total $3,232,000 What is the maximum total depreciation deduction that Chaz may deduct in 2019? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your answer...
Chaz Corporation has taxable income in 2019 of $368,000 for purposes of computing the §179 expense...
Chaz Corporation has taxable income in 2019 of $368,000 for purposes of computing the §179 expense and acquired the following assets during the year: Placed in Asset Service Basis Office furniture September 12 $ 691,000 Computer equipment February 10 934,000 Delivery truck August 21 67,000 Qualified improvement property September 30 1,535,000 Total $ 3,227,000 What is the maximum total depreciation deduction that Chaz may deduct in 2019?
Chaz Corporation has taxable income in 2019 of $400,000 for purposes of computing the §179 expense...
Chaz Corporation has taxable income in 2019 of $400,000 for purposes of computing the §179 expense and acquired the following assets during the year: Placed in Asset Service Basis Office furniture September 12 $ 781,000 Computer equipment February 10 914,000 Delivery truck August 21 57,000 Qualified improvement property September 30 1,515,000 Total $ 3,267,000 What is the maximum total depreciation deduction that Chaz may deduct in 2019? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)...
Chaz Corporation has taxable income in 2019 of $406,000 for purposes of computing the §179 expense...
Chaz Corporation has taxable income in 2019 of $406,000 for purposes of computing the §179 expense and acquired the following assets during the year: Placed in Asset Service Basis Office furniture September 12 $ 781,000 Computer equipment February 10 916,000 Delivery truck August 21 58,000 Qualified improvement property September 30 1,517,000 Total $ 3,272,000 What is the maximum total depreciation deduction that Chaz may deduct in 2019? (Use MACRS Table 1, Table 2, Table 3, Table 4and Table 5.) (Round...
Chaz Corporation has taxable income in 2018 of $426,000 for purposes of computing the §179 expense...
Chaz Corporation has taxable income in 2018 of $426,000 for purposes of computing the §179 expense and acquired the following assets during the year: Placed in Asset Service Basis Office furniture September 12 $ 781,000 Computer equipment February 10 910,000 Delivery truck August 21 55,000 Qualified improvement property September 30 1,511,000 Total $ 3,257,000 What is the maximum total depreciation deduction that Chaz may deduct in 2018? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)...
Chaz Corporation has taxable income in 2020 of $372,000 for purposes of computing the §179 expense...
Chaz Corporation has taxable income in 2020 of $372,000 for purposes of computing the §179 expense and acquired the following assets during the year: Placed in Asset Service Basis Office furniture September 12 $ 681,000 Computer equipment February 10 936,000 Delivery truck August 21 68,000 Qualified improvement property September 30 1,537,000 Total $ 3,222,000 What is the maximum total depreciation deduction that Chaz may deduct in 2020? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)...
Chaz Corporation has taxable income in 2019 of $360,000 for purposes of computing the §179 expense...
Chaz Corporation has taxable income in 2019 of $360,000 for purposes of computing the §179 expense and acquired the following assets during the year: Placed in Asset Service Basis Office furniture September 12 $ 711,000 Computer equipment February 10 930,000 Delivery truck August 21 65,000 Qualified improvement property September 30 1,531,000 Total $ 3,237,000 What is the maximum total depreciation deduction that Chaz may deduct in 2019?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT