11 5 points At the beginning of its 2024 tax year, Hiram owned the following business assets: Furniture Equipment Machinery Date Placed in Service Accumulated Initial Cost Depreciation Recovery Period 6/19/2022 5/2/2021 $55,500 $21,523 7-year 88,750 63,190 5-year 9/30/2021 69,250 49,306 5-year Depreciation Convention Half-year Half-year Half-year Mc Graw Hill 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. > Answer is complete but not entirely correct. 2024 MACRS Depreciation Furniture Equipment Machinery $ 7,941 x 8,525 12,110 Total MACRS Depreciation $ 28,576 Section 179 on new tools 610,000 Maximum 2024 cost recovery deduction $ 638,576 < Prev 11 of 20 Next > Return to question 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 Date Placed in Service Accumulated Initial Cost Depreciation Recovery Period 6/19/2022 5/2/2021 $55,500 $21,523 7-year 88,750 63,190 5-year 9/30/2021 69,250 49,306 5-year Depreciation Convention Half-year Half-year Half-year Mc Graw Hill 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. > Answer is complete but not entirely correct. 2024 MACRS Depreciation Furniture Equipment Machinery $ 7,941 x 8,525 12,110 Total MACRS Depreciation $ 28,576 Section 179 on new tools 610,000 Maximum 2024 cost recovery deduction $ 638,576 < Prev 11 of 20 Next > Return to question 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
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 84P
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
Date Placed in
Service
Accumulated
Initial Cost Depreciation
Recovery
Period
6/19/2022
5/2/2021
$55,500
$21,523
7-year
88,750
63,190
5-year
9/30/2021
69,250
49,306
5-year
Depreciation
Convention
Half-year
Half-year
Half-year
Mc
Graw
Hill
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.
> Answer is complete but not entirely correct.
2024
MACRS
Depreciation
Furniture
Equipment
Machinery
$
7,941 x
8,525
12,110
Total MACRS Depreciation
$
28,576
Section 179 on new tools
610,000
Maximum 2024 cost recovery deduction
$
638,576
< Prev
11 of 20
Next >
Return to question
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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