11 5 points At the beginning of its 2024 tax year, Hiram owned the following business assets: Furniture Equipment Machinery Depreciation Convention Date Placed in Service Accumulated Recovery Initial Cost Depreciation Period 6/19/2022 5/2/2021 $55,500 $21,523 7-year Half-year 88,750 63,190 5-year Half-year 9/30/2021 69,250 49,306 5-year Half-year eBook Print On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $610,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Required: Compute Hiram's maximum cost recovery deduction for 2024. In making your computation, assume that taxable income before depreciation exceeds $2,210,000. Use Table 7-2. Note: Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar amount. References Mc Graw Hill Furniture Equipment Machinery Total MACRS Depreciation Section 179 on new tools Maximum 2024 cost recovery deduction 2024 MACRS Depreciation $ 0 0 < Prev 11 of 20 Next > Check my work TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year Depreciation Rate 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 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231
11 5 points At the beginning of its 2024 tax year, Hiram owned the following business assets: Furniture Equipment Machinery Depreciation Convention Date Placed in Service Accumulated Recovery Initial Cost Depreciation Period 6/19/2022 5/2/2021 $55,500 $21,523 7-year Half-year 88,750 63,190 5-year Half-year 9/30/2021 69,250 49,306 5-year Half-year eBook Print On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $610,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Required: Compute Hiram's maximum cost recovery deduction for 2024. In making your computation, assume that taxable income before depreciation exceeds $2,210,000. Use Table 7-2. Note: Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar amount. References Mc Graw Hill Furniture Equipment Machinery Total MACRS Depreciation Section 179 on new tools Maximum 2024 cost recovery deduction 2024 MACRS Depreciation $ 0 0 < Prev 11 of 20 Next > Check my work TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year Depreciation Rate 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 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 2BD
Related questions
Question
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Transcribed Image Text:11
5
points
At the beginning of its 2024 tax year, Hiram owned the following business assets:
Furniture
Equipment
Machinery
Depreciation
Convention
Date Placed in
Service
Accumulated
Recovery
Initial Cost Depreciation
Period
6/19/2022
5/2/2021
$55,500
$21,523
7-year
Half-year
88,750
63,190
5-year
Half-year
9/30/2021
69,250
49,306
5-year
Half-year
eBook
Print
On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $610,000; these tools are
three-year recovery property. These were Hiram's only capital transactions for the year.
Required:
Compute Hiram's maximum cost recovery deduction for 2024. In making your computation, assume that taxable income before
depreciation exceeds $2,210,000. Use Table 7-2.
Note: Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar
amount.
References
Mc
Graw
Hill
Furniture
Equipment
Machinery
Total MACRS Depreciation
Section 179 on new tools
Maximum 2024 cost recovery deduction
2024 MACRS
Depreciation
$
0
0
< Prev
11 of 20
Next >
Check my work
Transcribed Image Text:TABLE 7.2 MACRS for Business Personalty (Half-Year Convention)
Recovery Period
3-Year
5-Year
7-Year
10-Year
15-Year
20-Year
Year
Depreciation Rate
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
17.49
14.40
8.55
6.677
4
7.41
11.52
12.49
11.52
7.70
6.177
5
11.52
8.93
9.22
6.93
5.713
6
5.76
8.92
7.37
6.23
5.285
7
8.93
6.55
5.90
4.888
8
4.46
6.55
5.90
4.522
9
6.56
5.91
4.462
10
6.55
5.90
4.461
11
3.28
5.91
4.462
12
5.90
4.461
13
5.91
4.462
14
5.90
4.461
15
5.91
4.462
16
2.95
4.461
17
4.462
18
4.461
19
4.462
20
4.461
21
2.231
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