Question 1) In 2017, Angie placed in service $4,000 of 5-year property and $6,000 of 7...

Question 1) In 2017, Angie placed in service $4,000 of 5-year property and $6,000 of 7 year property. What is the effect of an election to use straight line depreciation over the alternative depreciation system life for the 5 year property for 2017?

A. the election must cover 5 year and 7 year property placed in service in 2017 and future years.
B. the election must cover the 5 year and 7 year property.
C. the election will apply to the 5 year property placed in service in 2017 and future years.
D. the election will apply to the 5 year property placed in service in 2017.

Question 2) In 1998, a taxpayer places into service an asset costing $6,000 with a 3-year recovery period for regular tax purposes and a 4 year alternative depreciation system recovery period for alternative minimum tax purposes. For regular tax purposes, 200% declining balance depreciation is selected. What is the greatest amount of depreciation allowed for alternative minimum taxable income in 1998?

A. $1,125
B. $1,500
C. $2,000
D. $2,250

Note: This was all the information provided in the questions. I removed the 3rd question because I figured it out.

Solutions

Expert Solution

1) In 2017, Angie placed in service $4,000 of 5-year property and $6,000 of 7 year property. What is the effect of an election to use straight line depreciation over the alternative depreciation system life for the 5 year property for 2017?

Answer

D. the election will apply to the 5 year property placed in service in 2017.

2) In 1998, a taxpayer places into service an asset costing $6,000 with a 3-year recovery period for regular tax purposes and a 4 year alternative depreciation system recovery period for alternative minimum tax purposes. For regular tax purposes, 200% declining balance depreciation is selected. What is the greatest amount of depreciation allowed for alternative minimum taxable income in 1998?

Answer

A. $1,125

ekkarill92 answered 2 years ago

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