Sage Creek Inc. began operations on 1/1/20. The company purchased $10,000 worth of computer equipment on...

Sage Creek Inc. began operations on 1/1/20. The company purchased $10,000 worth of computer equipment on August 1, and $50,000 worth of restaurant equipment on November 1. All of the equipment is 5 year property. Assuming that the company elects out of bonus depreciation and elects a Section 179 deduction of $10,000 on the restaurant equipment purchased in November.

(a) compute the total depreciation expense including Section 179 for Gallagher for 2020.

(b) compute the 2022 depreciation expense on the computer equipment if the equipment was sold on January 10^th, 2022.

(c) Assume that in addition to the assets listed above, Gallagher also purchased a Ford F350 diesel pickup for $70,000 in May 2020. Assuming no bonus depreciation or Section 179 deduction on this asset, what is the amount of depreciation expense for this pickup in 2019?

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ekkarill92 answered 1 year ago

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