Problem 10-50 (LO 10-2) (Algo)Way Corporation disposed of the following tangible personal property assets in the current year.AssetFurniture (7-year)Machinery (7-year)Delivery truck (5-year).Machinery (7-year)Computer (5-year)"Used 100 percent for business.DateAcquired5/12/173/23/189/17/1910/11/2010/11/21Date Sold7/15/213/15/213/13/218/24/2112/15/21Convention Original Basis$ 90,000HY107,00048,000306,400108,000Answer is complete but not entirely correct.Depreciation deduction$ 34,877P1QHYHYAssume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2021 depreciation deduction (ignore $179 expenseand bonus depreciation for this problem). (Use MACRS Table 1, Table 2. and Exhibit 10-6) (Round your intermediate dollarcalculations and final answer to the nearest whole dollar amount.)

Depreciation refers to the process of computing the rate at which an asset's cost of declining with…

mar) 3/23/18 9/17/19 10/11/20 10/11/21 3/13/21 8/24/21 12/15/21 MY MQ HY 306,400 105,000 business. wery truck is not a luxury auto. Calculate Way Corporation's 2021 depreciation son for this problem). (Use MACRS Table 1. Table 2. and Exhibit 10-6) (Round al answer to the nearest whole dollar amount.)

mar) 3/23/18 9/17/19 10/11/20 10/11/21 3/13/21 8/24/21 12/15/21 MY MQ HY 306,400 105,000 business. wery truck is not a luxury auto. Calculate Way Corporation's 2021 depreciation son for this problem). (Use MACRS Table 1. Table 2. and Exhibit 10-6) (Round al answer to the nearest whole dollar amount.)

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 74P

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Jerry uses a building for business purposes. The building was purchased on April 1, year 3, for 124,000. It was sold on October 3, year 6, for 200,000. Accumulated depreciation as of the date of sale was 14,000, 4,000 of which was in excess of straight line. How much of the gain in year 6 is unrecaptured Section 1250 gain? a. 4,000 b. 10,000 c. 14,000 d. 100,000
Way Corporation disposed of the following tangible personal property assets in the current year. IITI Date Original Acquired 5/12/17 Asset Date Sold Convention Basis Furniture (7-year) Machinery (7-year) Delivery truck* (5-year) Machinery (7-year) Computer (5-year) $ 82,500 99,500 42,000 298,600 102,000 7/15/21 HY 3/23/18 3/15/21 MQ 9/17/19 3/13/21 HY 10/11/20 8/21/21 MQ 10/11/21 12/15/21 HY *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2021 depreciation deduction (ignore §179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.) Depreciation deduction
TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2e MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 8 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73
Way Corporation disposed of the following tangible personal property assets in the current year. Date Original Acquired 5/12/17 Asset Date Sold Convention Basis Furniture (7-year) Machinery (7-year) Delivery truck* (5-year) Machinery (7-year) Computer (5-year) $ 82,500 99,500 42,000 298,600 102,000 7/15/21 HY 3/23/18 3/15/21 MQ 3/13/21 8/21/21 12/15/21 9/17/19 HY 10/11/20 MQ 10/11/21 HY *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2021 depreciation deduction (ignore §179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.) Depreciation deduction
Problem 10-50 (LO 10-2) (Static) Way Corporation disposed of the following tangible personal property assets in the current year. Date Acquired 5/12/18 Original Basis $ 55,000 3/23/19 72,000 20,000 9/17/20 10/11/21 270,000 10/11/22 80,000 Depreciation deduction Asset Furniture (7-year) Machinery (7-year) Delivery truck* (5-year) Machinery (7-year) Computer (5-year) *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2022 depreciation deduction (ignore §179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) Note: Round your intermediate dollar calculations and final answer to the nearest whole dollar amount. Date Sold 7/15/22 3/15/22 3/13/22 8/11/22 12/15/22 $ 63,357 X Convention HY MQ HY MỌ HY
Way Corporation disposed of the following tangible personal property assets in the current year. Date Acquired 5/12/2018 3/23/2019 Original Basis $ 87,500 104,500 46,000 303,800 9/17/2020 10/11/2021 10/11/2022 106,000 Asset Furniture (7-year) Machinery (7-year) Delivery truck (5-year). Date Sold 7/15/2022 3/15/2022 3/13/2022 8/11/2022 12/15/2022 Depreciation deduction Convention HY MQ HY MQ Machinery (7-year); Computer (5-year) *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2022 depreciation deduction (ignore 5179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2. and Exhibit 10-6.) Note: Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.
Way Corporation disposed of the following tangible personal property assets in the current year. Asset Date Acquired Date Sold Convention Original Basis Furniture (7-year) 5/12/2018 7/15/2022 HY $ 112,500 Machinery (7-year) 3/23/2019 3/15/2022 MQ 129,500 Delivery truck* (5-year) 9/17/2020 3/13/2022 HY 66,000 Machinery (7-year) 10/11/2021 8/11/2022 MQ 329,800 Computer (5-year) 10/11/2022 12/15/2022 HY 126,000 *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2022 depreciation deduction (ignore §179 expense and bonus depreciation for this problem).
k 1 nces Way Corporation disposed of the following tangible personal property assets in the current year. Date Acquired 5/12/19 Original Basis 3/23/20 $ 100,000 117,000 56,000 9/17/21 10/11/22 316,800 10/11/23 116,000 Asset Furniture (7-year) Machinery (7-year) Delivery truck* (5-ear) Machinery (7-year) Computer (5-year) Date Sold 7/15/23 3/15/23 3/13/23 8/11/23 12/15/23 Depreciation deduction Convention HY MQ HY MQ HY Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2023 depreciation deduction (ignore $179 expense and bonus depreciation for this problem). (Use MACRS Table 1 Table 2, and Exhibit 10-6.) ***** Note: Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.
Way Corporation disposed of the following tangible personal property assets in the current year. Date Acquired 5/12/19 Original Basis $ 55,000 72,000 20,000 270,000 3/23/20 9/17/21 10/11/22 10/11/23 80,000 Asset Furniture (7-year) Machinery (7-year) Delivery truck* (5-year) Machinery (7-year) Computer (5-year) *Used 100 percent for business. Date Sold 7/15/23 3/15/23 3/13/23 8/11/23 12/15/23 Depreciation deduction Convention HY MQ ELEGE HY MQ HY Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2023 depreciation deduction (ignore §179 expense and bonus depreciation for this problem). (Use MACRS Table 1. Table 2, and Exhibit 10-6.) Note: Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.
Problem 14-73 (Algorithmic) (LO. 8, 9) Copper Industries (a sole proprietorship) sold three § 1231 assets during 2023. Data on these property dispositions are as follows: Accumulated Asset Cost Acquired Depreciation Bin Rack $119,600 10/10/20 $77,740 $59,800 10/10/23 Forklift 47,840 10/16/20 23,920 17,940 10/10/23 107,640 03/12/22 35,880 59,800 10/10/23 Asset If an amount is zero, enter "0". a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. Rack Forklift Bin Copper has 1231 Character of Gain or Loss Sold For Total Amount of Gain or Loss § 1231 gain § 1231 loss Ordinary income of Sold On Amount of § 1245 Recapture Balance of Gain or Loss due to § 1245 recapture and $ of § b. Assuming that Copper has $11,960 nonrecaptured net § 1231 losses from prior years, analyze these transactions and determine the amount (if any) that will be treated as a long- term capital gain.
Problem 14-72 (b) (LO. 7, 8, 9) Goyo Industries (a sole proprietorship) sold three § 1231 assets during 2020. Data on these property dispositions are as follows: Sold Asset Cost Acquired Depreciation Sold On For Machine $85,000 08/31/16 $32,000 $60,000 12/04/20 #1 Machine $30,000 11/17/17 $12,000 $15,000 12/04/20 #2 Machine $77,000 02/28/19 $28,000 $51,000 12/04/20 #3 Determine the amount and the character of the recognized gain or loss from the disposition of each asset. If an amount is zero, enter "0". Total Amount of Character of Amount of § 1245 Balance of Asset Gain or Loss Gain or Loss Recapture Gain or Loss Machine #1 $ $ Machine #2 $ 2$ Machine #3 Goyo has of due to § 1245 recapture and $ of § 1231 Assuming Goyo has no nonrecaptured net § 1231 losses from prior years, analyze these transactions and determine the amount (if any) that will be treated as a long-term capital gain.
Problem 14-72 (LO. 7, 8, 9) Siena Industries (a sole proprietorship) sold three § 1231 assets during 2023. Data on these property dispositions are as follows: Accumulated Cost Acquired Depreciation Sold For Sold On Rack $100,000 10/10/19 $62,000 $86,000 10/10/23 Forklift 35,000 10/16/20 23,000 4,000 10/10/23 Bin 87,000 03/12/22 34,000 60,000 10/10/23 Asset If an amount is zero, enter "0". a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. Total Amount of Amount of § 1245 Recapture Gain or Loss Asset Rack Forklift Bin Siena has loss Feedback ►Check My Work Character of Gain or Loss Ordinary income § 1231 loss Ordinary income X of ordinary income 7,000 X X due to § 1245 recapture and X 0 ✓ 7,000 Balance of Gain or Loss 0 0 X of § 1231 X b. Assuming that Siena has no nonrecaptured net § 1231 losses from prior years, analyze these transactions and determine the amount (if any) that will be treated as a long-term capital gain. 0 ✓