Burbank Corporation (calendar-year-end) acquired the following property this year: (Use MACRS Table 1, Table 2 and Exhibit 10-10.) Used copier Asset New computer equipment Furniture New delivery truck Luxury auto Total June 6 Placed in Service Basis November 12 $ 7,800 14,000 32,000 19,000 70,000 $ 142,800 July 15 October 28 January 31 Burbank acquired the copler In a tax-deferred transaction when the shareholder contributed the copler to the business In exchange for stock.
Burbank Corporation (calendar-year-end) acquired the following property this year: (Use MACRS Table 1, Table 2 and Exhibit 10-10.) Used copier Asset New computer equipment Furniture New delivery truck Luxury auto Total June 6 Placed in Service Basis November 12 $ 7,800 14,000 32,000 19,000 70,000 $ 142,800 July 15 October 28 January 31 Burbank acquired the copler In a tax-deferred transaction when the shareholder contributed the copler to the business In exchange for stock.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Burbank Corporation (calendar-year-end) acquired the following property this year (Use MACRS Table 1, Table 2, and
Exhibit 10-10.)
Used copier
Asset
New computer equipment
Furniture
New delivery truck
Luxury auto
Total
Placed in Service
November 12
Basis
0 $ 7,800
June 6
14,000
July 15
October 28
January 31
32,000
19,000
70,000
$142,800
Burbank acquired the copler In a tax-deferred transaction when the shareholder contributed the copler to the business In
exchange for stock.
a. Assuming no bonus or $179 expense, what is Burbank's maximum cost recovery deduction for this year?
Note: Round your answer to the nearest whole dollar amount.
Maximum cost recovery deduction
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