At the beginning of its 2023 tax year, Hiram owned the following business assets: Date Placed in Service 6/19/2021 5/2/2020 9/30/2020 Furniture Equipment Machinery Initial Cost $30,750 70,000 58,000 Furniture Equipment Machinery Total MACRS Depreciation Section 179/bonus on new tools Maximum 2023 cost recovery deduction On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $589,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Answer is complete but not entirely correct. 2023 MACRS Depreciation Required: Compute Hiram's maximum cost recovery deduction for 2023. In making your computation, assume that taxable income before depreciation exceeds $2,000,000. Use Table 7-2. Note: Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dolla amount. $ Accumulated Recovery Depreciation Period 7-year 5-year 5-year. $ $ $11,925 49,840 41,296 5,378 4,032 6,682 16,092 29,257 45,349 Depreciation Convention Half-year Half-year Half-year

At the beginning of its 2023 tax year, Hiram owned the following business assets: Date Placed in Service 6/19/2021 5/2/2020 9/30/2020 Furniture Equipment Machinery Initial Cost $30,750 70,000 58,000 Furniture Equipment Machinery Total MACRS Depreciation Section 179/bonus on new tools Maximum 2023 cost recovery deduction On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $589,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Answer is complete but not entirely correct. 2023 MACRS Depreciation Required: Compute Hiram's maximum cost recovery deduction for 2023. In making your computation, assume that taxable income before depreciation exceeds $2,000,000. Use Table 7-2. Note: Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dolla amount. $ Accumulated Recovery Depreciation Period 7-year 5-year 5-year. $ $ $11,925 49,840 41,296 5,378 4,032 6,682 16,092 29,257 45,349 Depreciation Convention Half-year Half-year Half-year

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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At the beginning of its 2023 tax year, Hiram owned the following business assets: Furniture Equipment Machinery Depreciation Convention Date Placed in Service Accumulated Initial Cost Depreciation Recovery Period 6/19/2021 5/2/2020 9/30/2020 $54,750 82,500 75,000 $21,232 7-year Half-year 58,740 5-year Half-year 53,400 5-year Half-year On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $598,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Required: Compute Hiram's maximum cost recovery deduction for 2023. In making your computation, assume that taxable income before depreciation exceeds $1,090,000. Use Table 7-2. Note: Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar amount. Furniture Equipment Machinery Total MACRS Depreciation Section 179/bonus on new tools Maximum 2023 cost recovery deduction 2023…
On July 10, 2023, Ariff places in service a new SUV that cost $70,000 and weighed 6,300 pounds. The SUV is used 100% for business. Determine Ariff's maximum deduction for 2023, assuming Ariff's § 179 business income is $110,000. Ariff does not take additional first-year depreciation. A. $14,000 B. $ 28,900 C. $37, 120 D. $70,000 It says that the answer is C but why is that? Please be detailed
TGIF Company owned a building on January 01, 2019, with historical cost of 52,000,000. The property is depreciated over 40 years on a straight-line basis with no residual value. The entity adopted a policy of revaluation of property. The building had so far been revalued twice at fair value. The fair values of the building are as follows: January 01, 2020 : 60,840,000 January 01, 2022 : 72,150,000.How much is the revaluation surplus to be reported in the statement of changes in equity for the year ended December 31, 2022? a. 23,660,000 b. 23,400,000 c. 24,050,000 d. 24,570,000
Assume that ACW Corporation has 2022 taxable income of $1,500,000 for purposes of computing the $179 expense. The company acquired the following assets during 2022 (assume no bonus depreciation): Asset Placed in Service Basis Machinery September 12 $470,000 Computer equipment February 10 $ 70,000 Delivery truck August 21 $ 93,000 Qualified real property April 2 $ 1,380,000 (MACRS, 15 year, 150% DB) Total $2,013,000 Question: What is the maximum amount of §179 expense ACW may deduct for 2022? Answer: Question: What is the maximum total depreciation that ACW may deduct in 2022 on the assets it placed in service in 2022?
Chaz Corporation has taxable income in 2022 of $314,800 for purposes of computing the $179 expense and acquired the following assets during the year; Asset Office furniture Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total Placed in Service September 12 February 10 August 21 September 30 Maximumn total depreciation deduction Basis $ 808,000 958,000 96,000 1,527,000 $ 3,389,000 What is the maximum total depreciation deduction that Chaz may deduct in 2022? (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.
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AMP Corporation (calendar year-end) has 2022 taxable income of $1,900,000 for purposes of computing the $179 expense. During 2022, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Placed in Service Machinery September 12 Computer equipment Office building February 10 April 2 Basis $ 1,550,000 365,000 480,000 Total $ 2,395,000 b. What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2022 on the assets it placed in service in 2022, assuming no bonus depreciation?
At the beginning of 2021, Pharoah Co. purchased an asset for $1400000 with an estimated useful life of 5 years and an estimated salvage value of $142000. For financial reporting purposes the asset is being depreciated using the straight-line method; for tax purposes the double-declining-balance method is being used. Pharoah Co's tax rate is 20% for 2021 and all future years. At the end of 2021, which of the following deferred tax accounts and balances is reported on Pharoah's balance sheet? Account Deferred tax liability Deferred tax liability Deferred tax asset Balance $61680 $50320 $61680
AMP Corporation (calendar-year-end) has 2020 taxable income of $1,900,000 for purposes of computing the §179 expense. During 2020, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Placed in Asset Service Basis Machinery September 12 $ 1,360,000 Computer equipment February 10 400,000 Office building April 2 515,000 Total $ 2,275,000 a. What is the maximum amount of §179 expense AMP may deduct for 2020? b. What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2020 on the assets it placed in service in 2020, assuming no bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
AMP Corporation (calendar - year - end) has 2023 taxable income of $1,900,000 for purposes of computing the §179 expense. During 2023, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Asset Placed in Service Basis Machinery September 12 $ 1,440,000 Computer equipment February 10 440,000 Office building April 2 555,000 Total $ 2,435,000 a. What is the maximum amount of $179 expense AMP may deduct for 2023? b. What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2023 on the assets it placed in service in 2023, assuming no bonus depreciation?
5
Arlington LLC purchased an automobile (5-year property) for $74,000 on July 5, 2020. What is Arlington's depreciation deduction for 2020 if its business-use percentage is 73 percent? (Ignore any possible bonus depreciation.)