8-33 qug tham acquired the following new properties. mis oli to dºch au 01 00 10. MACRS, Section 179. (Objs. 1 and 2) The Redwood Company, a calendar-year corporation, ar Item Costabub $ 28,000 Copier Furniture Equipment 84,000 540,000 110,250 Date Acquired March 1, 2021 June 1, 2021 June 30, 2021 July 9, 2021 Warehouse a. Compute the maximum depreciation deduction that Redwood can take in 2021 and 2022 on each of these properties assuming one-half of the cost of each qualifying property was expensed under section 179 and an election out of bonus depreciation was made for property class. Assume the equipment is 7-year property. each b. Assume that Redwood elects the maximum allowed Section 179 expense on the equipment soivent acquired on June 30, 2021, and that the equipment costs $1,200,000. The company uses od town bonus depreciation and regular MACRS to depreciate the rest of the cost. Redwood's No business income limitation (taxable income before Section 179 expense, but after all other pre expenses, including depreciation) is $950,000. Compute the maximum total depreciation deduction (179, bonus, and regular depreciation) for the equipment for 2021.

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Chapter1: Financial Statements And Business Decisions
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Year of acquisition 2021 on question Please use 2022 tax rules
Depreciation and Amortization
8-33
ging tran acquired the following new properties. mi or to och sau od 360
101 00 10. MACRS, Section 179. (Objs. 1 and 2) The Redwood Company, a calendar-year corporation,
STS Cost
odl seu lemono 101
Date Acquired
$ 28,000anh March 1, 2021
enopb
Item
Copier
Furniture
Equipment
Warehouse
84,000 July June 1, 2021
540,000 preb June 30, 2021
110,250cember July 9, 2021
01105
am only a
a. Compute the maximum depreciation deduction that Redwood can take in 2021 and
Ignor 2022 on each of these properties assuming one-half of the cost of each qualifying property
Swo zwy Hled s bawas expensed under section 179 and an election out of bonus depreciation was made for
each property class. Assume the equipment is 7-year property.
b.
won & S
Assume that Redwood elects the maximum allowed Section 179 expense on the equipment
en acquired on June 30, 2021, and that the equipment costs $1,200,000. The company uses
101 miss to bonus depreciation and regular MACRS to depreciate the rest of the cost. Redwood's
No business income limitation (taxable income before Section 179 expense, but after all other
pre expenses, including depreciation) is $950,000. Compute the maximum total depreciation
belo deduction (179, bonus, and regular depreciation) for the equipment for 2021.
sol dinom-P
OSąd douM nO (2440)
lov botos ar
Transcribed Image Text:Depreciation and Amortization 8-33 ging tran acquired the following new properties. mi or to och sau od 360 101 00 10. MACRS, Section 179. (Objs. 1 and 2) The Redwood Company, a calendar-year corporation, STS Cost odl seu lemono 101 Date Acquired $ 28,000anh March 1, 2021 enopb Item Copier Furniture Equipment Warehouse 84,000 July June 1, 2021 540,000 preb June 30, 2021 110,250cember July 9, 2021 01105 am only a a. Compute the maximum depreciation deduction that Redwood can take in 2021 and Ignor 2022 on each of these properties assuming one-half of the cost of each qualifying property Swo zwy Hled s bawas expensed under section 179 and an election out of bonus depreciation was made for each property class. Assume the equipment is 7-year property. b. won & S Assume that Redwood elects the maximum allowed Section 179 expense on the equipment en acquired on June 30, 2021, and that the equipment costs $1,200,000. The company uses 101 miss to bonus depreciation and regular MACRS to depreciate the rest of the cost. Redwood's No business income limitation (taxable income before Section 179 expense, but after all other pre expenses, including depreciation) is $950,000. Compute the maximum total depreciation belo deduction (179, bonus, and regular depreciation) for the equipment for 2021. sol dinom-P OSąd douM nO (2440) lov botos ar
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