Problem 8-5 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3) Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2022, No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $50,000 and an estimated useful life of 5 years. Assume half-year convention for tax. Click here to access the depreciation tables. a. Calculate the amount of depreciation for 2022 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus. depreciation or election to expense. X Feedback Check My Work Incorrect b. Calculate the amount of depreciation for 2022, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables. X Feedback Check My Work topperert

Problem 8-5 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3) Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2022, No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $50,000 and an estimated useful life of 5 years. Assume half-year convention for tax. Click here to access the depreciation tables. a. Calculate the amount of depreciation for 2022 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus. depreciation or election to expense. X Feedback Check My Work Incorrect b. Calculate the amount of depreciation for 2022, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables. X Feedback Check My Work topperert

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 8DQ

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Problem 8-33 (LO. 2) Debra acquired the following new assets during 2020: Date Asset Cost April 11 Furniture $40,000 July 28 Trucks 40,000 November 3 Computers 70,000 Debra does not elect immediate expensing under § 179. She does not claim any available additional first-year depreciation. If required, round your answers to the nearest dollar. Click here to access the depreciation tables to use for this problem. c. The cost recovery deductions for the current year is: Furniture: $fill in the blank 5 Trucks: $fill in the blank 6 Computers: $fill in the blank 7 Exhibit 8.4 MACRS Accelerated Depreciation for Personal Property Assuming Mid-Quarter Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table) 3-Year Recovery Year First Quarter Second Quarter Third Quarter Fourth Quarter 1 58.33 41.67 25.00 8.33 2 27.78 38.89 50.00 61.11 5-Year Recovery Year First Quarter Second Quarter Third…
help please Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3) Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2019. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $42,000 and an estimated useful life of 5 years. Assume half-year convention for tax. Click here to access the depreciation tables. a. Calculate the amount of depreciation for 2019 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life. b. Calculate the amount of depreciation for 2019 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense. c. Calculate the amount of depreciation for…
Problem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3) Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2021. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $50,000 and an estimated useful life of 5 years. Assume half-year convention for tax. Click here to access the depreciation tables. a. Calculate the amount of depreciation for 2021 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life. b. Calculate the amount of depreciation for 2021 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense. $1 c. Calculate the amount of depreciation for 2021,…
Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3) Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2019. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $42,000 and an estimated useful life of 5 years. Assume half-year convention for tax. Click here to access the depreciation tables. a. Calculate the amount of depreciation for 2019 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life.$fill in the blank ac0f3efbd00efc6_1 b. Calculate the amount of depreciation for 2019 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense.$fill in the…
Exercise 8-22 (Algorithmic) (LO. 2) Andre acquired and placed in service a computer on March 3, 2023, for $44,600. He elects the straight-line method for cost recovery. Andre does not elect immediate expensing under § 179. He does not claim any available additional first-year depreciation. Click here to access the depreciation table to use for this problem. Calculate Andre's cost recovery deduction for the computer for tax years 2023 and 2024. 2023: $ 2024: $ 7,433 X 8,920
Modified Accelerated Cost Recovery System (MACRS), Listed Property, Limitation on Depreciation of Luxury Automobiles(LO 8.2, 8.4, 8.5) On September 14, 2019, Jay purchased a passenger automobile that is used 75 percent in his accounting business. The automobile has a basis for depreciation purposes of $40,000, and Jay uses the accelerated method under MACRS. Jay does not elect to expense under section 179. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. TABLE 8.2 Accelerated Depreciation for Personal Property Assuming Half-Year Convention(For Property Placed in Service after December 31, 1986) RecoveryYear 3-Year(200% DB) 5-Year(200% DB) 7-Year(200% DB) 10-Year(200% DB) 15-Year(150% DB) 20-Year(150% DB) 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 * 19.20…
Problem 8-34 (LO. 2) Weston acquires a new office machine (seven-year class asset) on August 2, 2017, for $75,000. This is the only asset Weston acquired during the year. He does not elect immediate expensing under § 179. He claims the maximum additional first-year depreciation deduction. On September 15, 2019, Weston sells the machine. Click here to access the depreciation tables in the textbook. If required, round your answers to the nearest dollar. a. Determine Weston’s cost recovery for 2017 and 2018.2017: $fill in the blank 12018: $fill in the blank 2 b. Determine Weston’s cost recovery for 2019.$fill in the blank 3
Exercise 8-25 (LO. 4) On April 5, 2023, Kinsey places in service a new automobile that cost $70,000. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 75% for business and 25% for personal use in each tax year. Kinsey uses the regular MACRS method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this problem. Compute the total depreciation allowed for: 2023: 2024:
Modified Accelerated Cost Recovery System (MACRS), Election to Expense, Listed Property, Limitation on Depreciation of Luxury Automobiles (LO 8.2, 8.3, 8.4, 8.5) During 2022, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30) Baking equipment (June 30) $66,000 10,000 Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile, and he also uses the MACRS accelerated method to calculate depreciation but elects out of bonus depreciation. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. Calculate William's maximum depreciation deduction for 2022, assuming he uses the automobile 100 percent in his business. X
Problem 8-42 (Algorithmic) (LO. 4) On February 1, 2021, Leo purchased and placed in service a new car that cost $56,400. 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 considered "listed property"? Yes ✔ c. Leo's cost recovery deduction in 2021 is s and for 2022 is s 10,829 X.
Problem 8-30 (Algorithmic) (LO. 1, 2) In 2019, José purchased a house for $203,200. He used the house as his personal residence. In December 2022, when the fair market value of the house was $265,000, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is b. Under MACRS, the cost recovery period for residential rental real estate is 27.5 mid-month convention. c. The cost recovery for 2022 is years, and it is subject to the
Required information Problem 10-67 (LO 10-3) (Algo) [The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2020. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2020 and 2021 (Lina doesn't want to take bonus depreciation for 2020 or 2021) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) Problem 10-67 Part f (Algo) f. The vehicle cost $93,000, and it is an SUV that weighs 6,500 pounds. Business use was 100 percent. Year 2020 2021 Depreciation deduction