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.

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.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 62E

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Check my work Required information Problem 10-54 (LO 10-2, LO 10-3) (Algo) Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (gnore S179 expense and bonus depreciation for this problem): (Use MACRS Table Table 2 and Iable 5) Date Placed n original Anset Service Basis Hachinery Computer equipnent Delivery truck Turniture Oetober 25 Februard March 17 April 22 $ 90, 000 30,000 43,000 170,000 $ 333,000 Total "The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $500,000. Problem 10-54 Part a (Algo) a. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect 5179 expense and elects out of bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) MACRS depreciation
On anuary 1.2023, piant assets cet ere 5190.000 and un Decenber at, 2023. plart assets. et are Sz00.000. Depredation eperise for he yeraS10.000 Ne plant ets wrs soid or ehenget during the year What is the coet af the plant asts acqured dung the year OA 10 OR S000 OG. 100.000 OD 0.000
E10-8 Asset Acquired by Donation A developer of a large shopping center donated a building and land to Hetting Co. without charge. The agreement provided that the company employ 350 people for 10 years. The land was appraised at $65,000 and the building at $44,000. Required: 1. Prepare the journal entry to record the acquisition of the land and building. 2. Next Level How should the 10-year agreement be reported in the financial statements? 3. Next Level If the title were not to pass until after 10 years, would your answers to Requirements 1 and 2 change?
Assume that ACW Corporation has 2023 taxable income of $1,820,000 for purposes of computing the §179 expense. The company acquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.) Placed in Service 12-September 10-February Delivery truck 21-August Qualified real property (MACRS, 15 year, 02-April 150% DB) Total Asset Machinery Computer equipment a. What is the maximum amount of $179 expense ACW may deduct for 2023? b. What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2023 b. Maximum total deductible depreciation for 2023 Basis $ 502,000 102,000 125,000 1,412,000 $ 2,141,000 $ $ 1,160,000 1,304,408 X
PQ16.04 Shaffer Company acquires land for $77,000 cash. Additional costs are as follows. Removal of shed $ 300 Filling and grading 1,500 Salvage value of lumber of shed 120 Broker commission 1,130 Paving of parking lot 10,000 Closing costs 560 Shaffer will record the acquisition cost of the land at?
Problem 14-72 (LO. 7, 8, 9) Siena Industries (a sole proprietorship) sold three § 1231 assets during 2023. Data on these property dispositions are as follows: Accumulated Cost Acquired Depreciation Sold For Sold On Rack $100,000 10/10/19 $62,000 $86,000 10/10/23 Forklift 35,000 10/16/20 23,000 4,000 10/10/23 Bin 87,000 03/12/22 34,000 60,000 10/10/23 Asset If an amount is zero, enter "0". a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. Total Amount of Amount of § 1245 Recapture Gain or Loss Asset Rack Forklift Bin Siena has loss Feedback ►Check My Work Character of Gain or Loss Ordinary income § 1231 loss Ordinary income X of ordinary income 7,000 X X due to § 1245 recapture and X 0 ✓ 7,000 Balance of Gain or Loss 0 0 X of § 1231 X b. Assuming that Siena has no nonrecaptured net § 1231 losses from prior years, analyze these transactions and determine the amount (if any) that will be treated as a long-term capital gain. 0 ✓
18 Chaz Corporation has taxable income in 2023 of $1,313,150 for purposes of computing the $179 expense and acquired the following assets during the year: 0.31 points Asset office furniture Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total September 12 Placed in Service Basis $ 826,000 976,000 February 10 August 21 September 30 eBook Print 114,000 1,545,000 $ 3,461,000 What is the maximum total depreciation deduction that Chaz may deduct in 2023? (Use MACRS Table 1 Table 2. Table 3, Table 4, and Table 5.) Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. References Maximum total depreciation deduction Check my work Activate Windows Go to Settings to activate Windows Graw
PROBLEMS Problem 15-1 (AICPA Adapted) Trisha Company made the following soquinitions durinr the year: * Purchased for P6,400,000, ineluding appraiser fee of P60,000, warehoune building and the land on which it i located. The land had an appraised value of P2,000,000 and original cost of PL,400.000. The building had an apprnined value of Pa,000,000 and original coet of P2,800,000. * Purchased an office building and the Iand on which it is located for P7,600,000 cash and assumed an existing P2.b00,000 mortgage. Por realty tax purposes, the property is assesed at P9.600,000, 60% of which in allocated to the building. Acquired a tract of land in exchange for 25,000 shares of Trisha Company with P100 par value and a market prioe of PI20 per ahare on the date of sequisition. The last property tax bill indicated.ansessed value of P2,400,000 for the land. L. What in the total coet of land? a. 9,160,000 b. 8,500.000 e. 9,000,000 d. 8,660,000 2 What is the total cost of building? a. 8,760,000 b…
Required information Problem 10-54 (LO 10-2, LO 10-3) (Algo) Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore $179 expense and bonus depreciation for this problem): (Use MACRS Table 1. Table 2 and Table 5.) Asset Machinery Computer equipment Delivery truck* Furniture Date Placed in Original Basis Service October 25 February 3 March 17 $ 74,000 April 22 Total *The delivery truck is not a luxury automobile. 14,000 27,000 154,000 $ 269,000 In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $340,000. Problem 10-54 Part b (Algo) b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of depreciation (but does not take $179 expense)? MACRS depreciation
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Entity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price, gross of P10,000 trade discount 800,000 Non-refundable purchase taxes 20,000 Delivery and handling costs 40,000 Installation costs 30,000 Present value of decommissioning and restoration costs 10,000 1.) How much is the initial cost of the equipment? A. P 890,000 B. P 820,000 C. P 900,000 D. P 870,000
Required information Problem 10-54 (LO 10-2, LO 10-3) (Algo) Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2 and Table 5.) Asset Machinery Computer equipment Delivery truck* Furniture Total Date Placed in Service October 25 February 3 MACRS depreciation March 17 April 22 Original Basis $ 96,000 36,000 49,000 176,000 $ 357,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $560,000. Problem 10-54 Part b (Algo) b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take §179 expense)?