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 5 14 Problem 07-32 (Algo) [LO 7-5, 7-9] points eBook Print On April 23, Mrs. Yu purchased a taxi business from Mr. Mann for a $63,000 lump-sum price. The business consisted of a two-year-old taxicab worth $20,160, Mr. Mann's license to operate a taxi business in Baltimore, his list of regular customers, and his registered business name “On Time Any Time Taxi." Mrs. Yu operated the business from April 24 through the end of the year. Use Table 7-2. Required: a. Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $36,990. Assume Mrs. Yu wants to minimize taxable income. b. Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $18,400. Assume Mrs. Yu wants to minimize taxable income but does not wish to take bonus depreciation. References Complete this question by entering your answers in the tabs below. Mc Graw Hill Required A Required B Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $36,990. Assume Mrs. Yu wants to minimize taxable income. Note: Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Taxable income $ 128,832 Required A Required B > < Prev 14 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 5 14 Problem 07-32 (Algo) [LO 7-5, 7-9] points eBook Print On April 23, Mrs. Yu purchased a taxi business from Mr. Mann for a $63,000 lump-sum price. The business consisted of a two-year-old taxicab worth $20,160, Mr. Mann's license to operate a taxi business in Baltimore, his list of regular customers, and his registered business name “On Time Any Time Taxi." Mrs. Yu operated the business from April 24 through the end of the year. Use Table 7-2. Required: a. Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $36,990. Assume Mrs. Yu wants to minimize taxable income. b. Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $18,400. Assume Mrs. Yu wants to minimize taxable income but does not wish to take bonus depreciation. References Complete this question by entering your answers in the tabs below. Mc Graw Hill Required A Required B Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $36,990. Assume Mrs. Yu wants to minimize taxable income. Note: Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Taxable income $ 128,832 Required A Required B > < Prev 14 of 20 Next > Check my work
Chapter9: Deductions: Employee And Self-employed-related Expenses
Section: Chapter Questions
Problem 37P
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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
![5
14
Problem 07-32 (Algo) [LO 7-5, 7-9]
points
eBook
Print
On April 23, Mrs. Yu purchased a taxi business from Mr. Mann for a $63,000 lump-sum price. The business consisted of a two-year-old
taxicab worth $20,160, Mr. Mann's license to operate a taxi business in Baltimore, his list of regular customers, and his registered
business name “On Time Any Time Taxi." Mrs. Yu operated the business from April 24 through the end of the year. Use Table 7-2.
Required:
a. Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $36,990.
Assume Mrs. Yu wants to minimize taxable income.
b. Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $18,400.
Assume Mrs. Yu wants to minimize taxable income but does not wish to take bonus depreciation.
References
Complete this question by entering your answers in the tabs below.
Mc
Graw
Hill
Required A
Required B
Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was
$36,990. Assume Mrs. Yu wants to minimize taxable income.
Note: Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.
Taxable income
$ 128,832
Required A
Required B >
< Prev
14 of 20
Next >
Check my work](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8514667-bf86-4079-a5fb-967fac7b38d7%2F9260c35b-fee0-45af-826c-5111a9e2ac44%2Fedzti9_processed.png&w=3840&q=75)
Transcribed Image Text:5
14
Problem 07-32 (Algo) [LO 7-5, 7-9]
points
eBook
Print
On April 23, Mrs. Yu purchased a taxi business from Mr. Mann for a $63,000 lump-sum price. The business consisted of a two-year-old
taxicab worth $20,160, Mr. Mann's license to operate a taxi business in Baltimore, his list of regular customers, and his registered
business name “On Time Any Time Taxi." Mrs. Yu operated the business from April 24 through the end of the year. Use Table 7-2.
Required:
a. Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $36,990.
Assume Mrs. Yu wants to minimize taxable income.
b. Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was $18,400.
Assume Mrs. Yu wants to minimize taxable income but does not wish to take bonus depreciation.
References
Complete this question by entering your answers in the tabs below.
Mc
Graw
Hill
Required A
Required B
Compute Mrs. Yu's taxable income from the taxi business if her taxable income before any cost recovery deductions was
$36,990. Assume Mrs. Yu wants to minimize taxable income.
Note: Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.
Taxable income
$ 128,832
Required A
Required B >
< Prev
14 of 20
Next >
Check my work
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