Question

In: Accounting

On June 5, 2016, Leo purchased and placed in service a new car that cost $20,000....

On June 5, 2016, Leo purchased and placed in service a new car that cost $20,000. The business use percentage for the car is always 100%. Leo claims any available additional first-year depreciation but does not claim any expense under § 179.

a. What MACRS convention applies to the new car?

b. Is the automobile considered "listed property"?

c. Leo's cost recovery deduction in 2016 is ________ and for 2017 is

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

On February 15, 2018, Leo purchased and placed in service a new car that cost $54,600....
On February 15, 2018, Leo purchased and placed in service a new car that cost $54,600. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any § 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles. a. What MACRS convention applies to the new car? Half-year b. Is the automobile...
8-43 On June 5, 2016, Javier Sanchez purchased and placed in service a new 7-year class...
8-43 On June 5, 2016, Javier Sanchez purchased and placed in service a new 7-year class asset costing $550,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2016, his business generated a net income of $945,780 before any § 179 immediate expense election. Determine the maximum deductions that Javier can claim with respect to this asset in 2016: Section 179 expense: Aditional first year depreciation: MACRS Recovery: Total deduction:
On June 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset...
On June 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $560,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2019, his business generated a net income of $945,780 before any § 179 immediate expense election. Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining...
On June 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset...
On June 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $560,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2019, his business generated a net income of $945,780 before any § 179 immediate expense election. Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining...
On June 21, 2018, Duckwall Co. purchased and placed in service $3,185,000 of 5-year recovery property...
On June 21, 2018, Duckwall Co. purchased and placed in service $3,185,000 of 5-year recovery property (not an SUV). It is used 100% for business and Is the only property placed in service during the year. What is the maximum cost recovery deduction available if the Duckwall Co.​ has taxable income of $1.5 million before the cost recovery deduction? The Duckwall Co. does not elect out of Section 179 expensing or the additional first-year deprecation deduction. A.   $1,722,000 B.   $3,185,000...
Stewart purchased and placed in service a 5 year asset on November 23, 2018. It cost...
Stewart purchased and placed in service a 5 year asset on November 23, 2018. It cost $100,000. He sold the asset on February 19, 2019. Determine his depreciation deduction for 2019  
On February 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset...
On February 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $477,200 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost. During 2018, his business generated a net income of $572,640 before any § 179 immediate expense...
On February 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset...
On February 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $422,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost. During 2018, his business generated a net income of $506,400 before any § 179 immediate expense...
David immediately placed his car in service when he purchased it on May 16, 2019, for...
David immediately placed his car in service when he purchased it on May 16, 2019, for $23,500. He did not claim bonus depreciation and he used the car 55% for business. What is David's greatest allowable depreciation deduction amount for the second year, assuming the same business use percentage? $5,500 $8,855 $10,000 $16,000
On April 3, 2020, Terry purchased and placed in service a building that cost $2,000,000. An...
On April 3, 2020, Terry purchased and placed in service a building that cost $2,000,000. An appraisal determined that 25% of the total cost was attributed to the value of the land. The bottom floor of the building is leased to a retail business for $32,000. The other floors of the building are rental apartments with an annual rent of $160,000. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT