tax bl

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School

American University *

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604

Subject

Accounting

Date

Nov 24, 2024

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pdf

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2

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12/12/23, 10:12 AM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmlud… 1/2 Score: 3/3 Points 100 % [The following information applies to the questions displayed below.] At the beginning of the current year, Poplock began a calendar-year dog boarding business called Griff's Palace. Poplock bought and placed in service the following assets during the year: Asset Date Acquired Cost Basis Computer equipment 3/23 $ 7,200 Dog-grooming furniture 5/12 9,200 Pickup truck 9/17 10,000 Commercial building 10/11 292,000 Land (one acre) 10/11 102,000 Assuming Poplock does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1 , Table 2 , Table 3 , Table 4 and Table 5 .) Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.
12/12/23, 10:12 AM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmlud… 2/2 4. Award: 0.42 out of 0.42 points a. What is Poplock's year 1 depreciation deduction for each asset? Asset Depreciation Deduction Computer equipment $ 1,440 Dog-grooming furniture $ 1,315 Pickup truck $ 2,000 Commercial building $ 1,562 Land (one acre) $ 0 Total $ 6,317 rev: 09_09_2022_QC_CS-313608 References Problem Difficulty: 2 Medium Learning Objective: 10-02 Determine the applicable cost recovery (depreciation) life, method, and convention for tangible personal and real property and the deduction allowable under basic MACRS. a. What is Poplock's year 1 depreciation deduction for each asset? +/-1 $ +/-1 $ +/-1 $ +/-1 $ $ Asset Depreciation Deduction Computer equipment 1,440 Dog-grooming furniture 1,315 Pickup truck 2,000 Commercial building 1,562 Land (one acre) 0 Total +/-4 $ 6,317 F rev: 09_09_2022_QC_CS-313608 Explanation: a. $6,317, under the half-year convention for personal property, calculated as follows: Asset Purchase Date Quarter Recovery Period (1) Original Basis (2) Rate (1) × (2) Depreciation Computer equipment 23-March 1 st 5 years $ 7,200 20.00% $ 1,440 Dog-grooming furniture 12-May 2 nd 7 years $ 9,200 14.29% $ 1,315 Pickup truck 17-September 3 rd 5 years $ 10,000 20.00% $ 2,000 Commercial building 11-October 4 th 39 years $ 292,000 0.535% $ 1,562 $ 6,317
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