Albus, a calendar-year taxpayer, acquires 5-year tangible personal property in 2023 and does not use Sec. 179. He elects not to takeany bonus depreciation on the assets. Albus places the property in service on the following schedule:Date placed in serviceJanuary 15May 25November 8Acquisition Cost$100,000$150,000$400,0001. What is the total depreciation for 2023?2. What is the total depreciation for 2024, if he sells the $400,000 asset for $380,000 on March 16, 2024?3. If the Nov 8, asset was Real property instead of Personal property would that change your answer (you do not need to go backthrough the entire calculation if you say yes, just in general explain what would change).4. Assuming again all the assets are 5-year tangible personal property, how much total depreciation would there be in 2023, if heelects to take Sec. 179 of $250,000 on the Nov 8, asset?

First, we need to calculate the depreciation for each asset for the year 2023. The depreciation for…

Answered: Albus, a calendar-year taxpayer,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Diana acquires, for $65,000 ad places in service a 5 year class asset on December 19,2020. It is the only asset that Diana acquires during 2020. Diana does not elect immediate expensing under section 179. She elects additional first-year depreciation. Calculate Diana’s total recovery deduction for 2020.
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On January 1, 2022, Aniyah, a sole proprietor, purchased for use in her business a used production machine (7-year property) at a cost of $4,000. Aniyah does not purchase any other property during 2022 and has net income from her business of $80,000. If the standard recovery period table would allow $572 of depreciation expense on the $4,000 of equipment purchased in 2022, what is Aniyah’s maximum depreciation deduction including the Section 179 election to expense (but not bonus depreciation) for 2022? a. $4,000 b. $2,000 c. $572 d. $800
Diana acquires, for $65,000, and places in service a 5-year class asset on December 19, 2020. It is the only asset that Diana acquires during 2020. Diana does not elect immediate expensing under § 179. She elects additional first-year deprecation.
C sold capital property in Year 1 for net proceeds of $200,000. The property has an adjusted cost base of $40,000. C received $120,000 at the time of the sale and a note for the balance to be paid in equal annual instalments over the following two years. What is the minimum taxable capital gain to be reported in Year 2?
am. 107.
Jerome and Shanna sold a piece of property for $300,000, claiming that their basis was $150,000 and report a taxable gain of $150,000. Their 2019 return filed in February 2020 reported gross income of $250,000. Jerome and Shanna later determine that the property’s basis was actually $50,000, not $150,000, resulting in a $100,000 under-statement of income on the 2019 return. The statute of limitations period in which the IRS may assess additional tax in this situation expires on April 15 of what year?
On November 23, 2023, Hamlet acquires and places in service a 7-year class asset with a cost of $491,400 (the only asset acquired during the year). Hamlet does not elect immediate expensing under § 179. He does not claim any available additional first-year (bonus) depreciation. This is Hamlet's only tangible personal property acquisition for the year. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Calculate Hamlet's cost recovery deduction for 2023 and 2024. 2023: $ X 2024: $
S
16. Erwin Company, a calendar year taxpayer, made only two purchases of depreciable personalty this year. The first purchase was five-year recovery property costing $312,800, and the second purchase was seven-year recovery property costing $574,000. Compute Erwin's first-year MACRS depreciation with respect to the personalty assuming that a. The first purchase occurred on February 2, and the second purchase occurred on June 18. b. The first purchase occurred on February 2, and the second purchase occurred on October 13.
A taxpayer places a $1,090,000 5-year recovery period asset in service in 2022. This is the only asset placed in service in 2022. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)?
Tonia acquires the following 5-year class property in 2019: Asset Date of Acquisition Cost X January 15 $ 70,000 Y May 28 45,000 Z November 23 90,000 Total $ 205,000 Tonia does not elect §179 or bonus depreciation. Tonia has $300,000 of taxable income from her business. Determine her total cost recovery deduction for the year.

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