Question
In: Accounting
1) Bailey, a single taxpayer, obtains permission to change from a calendar year to a fiscal...
1) Bailey, a single taxpayer, obtains permission to change from a calendar year to a fiscal year ending June 30, 2019. During the six months ending June 30, 2019, she earns $40,000 and has $8,000 of itemized deductions. What is the amount of her annualized income?
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$32,000 |
||
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$28,000 |
||
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$64,000 |
||
|
$56,000 |
2) Ashley owns an unincorporated manufacturing business. In 2019, she purchases and places in service $2,650,000 of qualifying five-year equipment for use in her business. Her taxable income from the business before any depreciation deduction is $900,000. Ashley will elect out of bonus depreciation but plans to take the maximum allowable deduction under Sec. 179. Which of the following statements is true regarding the Sec. 179 election?
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She can deduct $1,020,000 as a Sec. 179 deduction in 2019, with no carryover to next year. |
||
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She can deduct $920,000 as a Sec. 179 deduction in 2019, with no carryover to next year. |
||
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She can deduct $900,000 as a Sec. 179 deduction in 2019; $20,000 may be carried over to next year. |
||
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She can deduct $900,000 as a Sec. 179 deduction in 2019, with no carryover to next year. |
Solutions
Expert Solution
| 1) Bailey, a single taxpayer, obtains permission to change from a calendar year to a fiscal year ending June 30, 2019. During the six months ending June 30, 2019, she earns $40,000 and has $8,000 of itemized deductions. What is the amount of her annualized income? | |||
| $32,000 | |||
| $28,000 | |||
| $64,000 | Correct | ($40000-$8000)x 12/6 | $ 64,000.00 |
| $56,000 | |||
| 2) Ashley owns an unincorporated manufacturing business. In 2019, she purchases and places in service $2,650,000 of qualifying five-year equipment for use in her business. Her taxable income from the business before any depreciation deduction is $900,000. Ashley will elect out of bonus depreciation but plans to take the maximum allowable deduction under Sec. 179. Which of the following statements is true regarding the Sec. 179 election? | |||
| She can deduct $1,020,000 as a Sec. 179 deduction in 2019, with no carryover to next year. | |||
| She can deduct $920,000 as a Sec. 179 deduction in 2019, with no carryover to next year. | |||
| She can deduct $900,000 as a Sec. 179 deduction in 2019; $20,000 may be carried over to next year. | Correct | ||
| She can deduct $900,000 as a Sec. 179 deduction in 2019, with no carryover to next year. | |||
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