Chaz Corporation has taxable income in 2021 of $313,000 for purposes of computing the §179 expense and acquired the following assets during the year: Placed in Service September 12 February 10 August 21 September 30 Asset Office furniture Computer equipment Delivery truck Qualified improvement property Basis $ 790,000 940,000 78,000 1,509,000 $ 3,317,000 Total What is the maximum total depreciation deduction that Chaz may deduct in 2021? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Maximum total depreciation deduction
Chaz Corporation has taxable income in 2021 of $313,000 for purposes of computing the §179 expense and acquired the following assets during the year: Placed in Service September 12 February 10 August 21 September 30 Asset Office furniture Computer equipment Delivery truck Qualified improvement property Basis $ 790,000 940,000 78,000 1,509,000 $ 3,317,000 Total What is the maximum total depreciation deduction that Chaz may deduct in 2021? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Maximum total depreciation deduction
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Table 1
| 3-Year | 5-Year | 7-Year | 10-Year | 15-Year | 20-Year | |
|---|---|---|---|---|---|---|
| Year 1 | 33.33% | 20.00% | 14.29% | 10.00% | 5.00% | 3.750% |
| Year 2 | 44.45 | 32.00 | 24.49 | 18.00 | 9.50 | 7.219 |
| Year 3 | 14.81 | 19.20 | 17.49 | 14.40 | 8.55 | 6.677 |
| Year 4 | 7.41 | 11.52 | 12.49 | 11.52 | 7.70 | 6.177 |
| Year 5 | 11.52 | 8.93 | 9.22 | 6.93 | 5.713 | |
| Year 6 | 5.76 | 8.92 | 7.37 | 6.23 | 5.285 | |
| Year 7 | 8.93 | 6.55 | 5.90 | 4.888 | ||
| Year 8 | 4.46 | 6.55 | 5.90 | 4.522 | ||
| Year 9 | 6.56 | 5.91 | 4.462 | |||
| Year 10 | 6.55 | 5.90 | 4.461 | |||
| Year 11 | 3.28 | 5.91 | 4.462 | |||
| Year 12 | 5.90 | 4.461 | ||||
| Year 13 | 5.91 | 4.462 | ||||
| Year 14 | 5.90 | 4.461 | ||||
| Year 15 | 5.91 | 4.462 | ||||
| Year 16 | 2.95 | 4.461 | ||||
| Year 17 | 4.462 | |||||
| Year 18 | 4.461 | |||||
| Year 19 | 4.462 | |||||
| Year 20 | 4.461 | |||||
| Year 21 | 2.231 |
Table 3
| Month Property Placed in Service | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Year 1 | 3.485% | 3.182% | 2.879% | 2.576% | 2.273% | 1.970% | 1.667% | 1.364% | 1.061% | 0.758% | 0.455% | 0.152% |
| Year 2-9 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 |
| Year 10 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 |
| Year 11 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 |
| Year 12 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 |
| Year 13 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 |
| Year 14 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 |
| Year 15 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 |
| Year 16 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 |
| Year 17 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 |
| Year 18 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 |
| Year 19 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 |
| Year 20 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 |
| Year 21 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 |
| Year 22 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 |
| Year 23 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 |
| Year 24 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 |
| Year 25 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 |
| Year 26 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 |
| Year 27 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 | 3.637 |
| Year 28 | 1.97 | 2.273 | 2.576 | 2.879 | 3.182 | 3.485 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 | 3.636 |
| Year 29 | 0.152 | 0.455 | 0.758 | 1.061 | 1.364 | 1.667 |
Table 4
| Month Property Placed in Service | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Year 1 | 3.042% | 2.778% | 2.513% | 2.249% | 1.984% | 1.720% | 1.455% | 1.190% | 0.926% | 0.661% | 0.397% | 0.132% |
| Year 2-7 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 |
| Year 8 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 | 3.175 |
| Year 9 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 |
| Year 10 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 |
| Year 11 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 |
| Year 12 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 |
| Year 13 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 |
| Year 14 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 |
| Year 15 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 |
| Year 16 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 |
| Year 17 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 |
| Year 18 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 |
| Year 19 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 |
| Year 20 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 |
| Year 21 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 |
| Year 22 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 |
| Year 23 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.115 | 3.174 | 3.175 | 3.174 | 3.175 |
| Year 24 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 |
| Year 25 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 |
| Year 26 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 |
| Year 27 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 |
| Year 28 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 |
| Year 29 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 |
| Year 30 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 |
| Year 31 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 |
| Year 32 | 1.720 | 1.984 | 2.249 | 2.513 | 2.778 | 3.042 | 3.175 | 3.174 | 3.175 | 3.174 | 3.175 | 3.174 |
| Year 33 | 0.132 | 0.397 | 0.661 | 0.926 | 1.190 | 1.455 |
Table 5
| Month Property Placed in Service | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
| Year 1 | 2.461% | 2.247% | 2.033% | 1.819% | 1.605% | 1.391% | 1.177% | 0.963% | 0.749% | 0.535% | 0.321% | 0.107% |
| Year 2–39 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 |
| Year 40 | 0.107 | 0.321 | 0.535 | 0.749 | 0.963 | 1.177 | 1.391 | 1.605 | 1.819 | 2.033 | 2.247 | 2.461 |
Transcribed Image Text:Chaz Corporation has taxable income in 2021 of $313,000 for purposes of computing the §179 expense and acquired the following
assets during the year:
Placed in
Basis
$ 790,000
940,000
78,000
1,509,000
$ 3,317,000
Asset
Service
September 12
February 10
August 21
September 30
Office furniture
Computer equipment
Delivery truck
Qualified improvement property
Total
What is the maximum total depreciation deduction that Chaz may deduct in 2021? (Use MACRS Table 1, Table 2, Table 3, Table 4 and
Table 5.) (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Maximum total depreciation deduction
Transcribed Image Text:TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter
Depreciation Rate for Recovery Period
5-Year
7-Year
Year 1
35.00%
25.00%
Year 2
26.00
21.43
Year 3
15.60
15.31
Year 4
11.01
10.93
Year 5
11.01
8.75
Year 6
1.38
8.74
Year 7
8.75
Year 8
1.09
TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter
Depreciation Rate for Recovery Period
5-Year
7-Year
Year 1
25.00%
17.85%
Year 2
30.00
23.47
Year 3
18.00
16.76
Year 4
11.37
11.97
Year 5
11.37
8.87
Year 6
4.26
8.87
Year 7
8.87
Year 8
3.34
TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter
Depreciation Rate for Recovery Period
5-Year
7-Year
Year 1
15.00%
10.71%
Year 2
34.00
25.51
Year 3
20.40
18.22
Year 4
12.24
13.02
Year 5
11.30
9.30
Year 6
7.06
8.85
Year 7
8.86
Year 8
5.53
TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter
Depreciation Rate for Recovery Period
5-Year
7-Year
Year 1
5.00%
3.57%
Year 2
38.00
27.55
Year 3
22.80
19.68
Year 4
13.68
14.06
Year 5
10.94
10.04
Year 6
9.58
8.73
Year 7
8.73
Year 8
7.64
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