In: Accounting
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?
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 |