Albus, a calendar-year taxpayer, acquires 5-year tangible personal property in 2023 and does not use Sec. 179. He elects not to take any bonus depreciation on the assets. Albus places the property in service on the following schedule: Date placed in service January 15 May 25 November 8 Acquisition Cost $100,000 $150,000 $400,000 1. 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 back through 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 he elects to take Sec. 179 of $250,000 on the Nov 8, asset?
Albus, a calendar-year taxpayer, acquires 5-year tangible personal property in 2023 and does not use Sec. 179. He elects not to take any bonus depreciation on the assets. Albus places the property in service on the following schedule: Date placed in service January 15 May 25 November 8 Acquisition Cost $100,000 $150,000 $400,000 1. 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 back through 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 he elects to take Sec. 179 of $250,000 on the Nov 8, asset?
Chapter1: Financial Statements And Business Decisions
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