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 Original Asset Machinery Computer equipment Delivery truck* Furniture Total 12,000 Service October 25 Basis $ 72,000 February 3 March 17 April 22 25,000 152,000 $ 261,000 *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 $320,000. Problem 10-54 Part a (Algo) a. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect §179 expense and elects out of bonus depreciation?
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 Original Asset Machinery Computer equipment Delivery truck* Furniture Total 12,000 Service October 25 Basis $ 72,000 February 3 March 17 April 22 25,000 152,000 $ 261,000 *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 $320,000. Problem 10-54 Part a (Algo) a. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect §179 expense and elects out of bonus depreciation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Original
Basis
$ 72,000
April 22
12,000
25,000
152,000
$ 261,000
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
$320,000.
Problem 10-54 Part a (Algo)
a. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect §179
expense and elects out of bonus depreciation?
Note: Round your intermediate calculations to the nearest whole dollar amount.
MACRS depreciation
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