Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore $179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.) Machinery Asset Computer equipment Delivery truck* Furniture Date Placed in Service October 25 Original Basis $ 70,000 February 3 March 17 April 22 10,000 23,000 150,000 Total $ 253,000 The delivery truck is not a luxury automobile. In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $300,000. b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take $179 expense)?
Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore $179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.) Machinery Asset Computer equipment Delivery truck* Furniture Date Placed in Service October 25 Original Basis $ 70,000 February 3 March 17 April 22 10,000 23,000 150,000 Total $ 253,000 The delivery truck is not a luxury automobile. In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $300,000. b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take $179 expense)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179
expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.)
Date Placed in
Service
October 25
Asset
Machinery
Computer equipment
Delivery truck"
February 3
March 17
Furniture
Total
April 22
Original
Basis
$ 70,000
10,000
23,000
150,000
$ 253,000
*The delivery truck is not a luxury automobile.
In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of
$300,000.
b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus
depreciation (but does not take $179 expense)?
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