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.) Asset Machinery Computer equipment Delivery truck+ Furniture Total Date Placed in Service October 25 February 3 March 17 April 22 The delivery truck is not a luxury automobile Original Basis $ 120,000 60.000 73,000 200,000 $ 453,000 addition to these assets. Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of
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.) Asset Machinery Computer equipment Delivery truck+ Furniture Total Date Placed in Service October 25 February 3 March 17 April 22 The delivery truck is not a luxury automobile Original Basis $ 120,000 60.000 73,000 200,000 $ 453,000 addition to these assets. Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Problem 10-54 (LO 10-2, LO 10-3) (Algo)
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)
Asset
Machinery
Computer equipment
Delivery truck+
Furniture
Date Placed in
Service
October 25
February 3
March 17
April 22
Original
Basis
$ 120,000
60.000
73,000
200,000
Total
$ 453,000
*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
$800,000
Problem 10-54 Part b (Algo)
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)?
MACRS depreciation
$ 137,160
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