Dean and Ellen Price are married and have a manufacturing business. They bought a piece of business equipment (7-year personal property) on 4/1/2018 for $50,000. Use half-year convention to calculate the MACRS depreciation deduction on the equipment for 2018 and 2019 They also has a pick-up truck used for business (5-year recovery period) acquired on 8/23/2018 for $25,000. On 11/15/2019, he sold the pick-up truck for $24,000. Use the half-year convention to calculate the MACRS depreciation on the truck for 2018 and 2019. On 10/26/2019 Dean sold his old storage building used for his business for $220,000. They purchased the building in 2001 for $100,000. Total depreciation (accumulated depreciation) taken on the building is $20,000. His 2019 Business income and expenditures (Schedule -C): Sales $ 657,500 Cost of goods sold $ 315,000 Other business expenses (incl. deprecation taken on the storage building) $ 140,000 In 2019 Dean also sold various assets. The information about the selling price and depreciation of the property is listed below. Placed in Service / Purchased on Sold on Initial Cost 2019 Depr. Amount Accumulated Depreciation. (Depr. Allowed) Tax Basis= Initial Cost – Depr. Allowed Office tables 4/4/2018 10/16/2019 For $2,900 $3,000 $375 $825 Office chairs 3/1/2015 11/8/2019 For $4,000 $8,000 $1,000 $2,200 Marketable securities 2/1/2019 12/1/2019 For $20,000 $12,000 $0 $0 Land held for investment 7/1/2018 11/29/2019 For $48,000 $45,000 $0 $0
Dean and Ellen Price are married and have a manufacturing business.
They bought a piece of business equipment (7-year personal property) on 4/1/2018 for $50,000. Use half-year convention to calculate the MACRS
They also has a pick-up truck used for business (5-year recovery period) acquired on 8/23/2018 for $25,000. On 11/15/2019, he sold the pick-up truck for $24,000. Use the half-year convention to calculate the MACRS depreciation on the truck for 2018 and 2019.
On 10/26/2019 Dean sold his old storage building used for his business for $220,000. They purchased the building in 2001 for $100,000. Total depreciation (
His 2019 Business income and expenditures (Schedule -C):
Sales $ 657,500
Cost of goods sold $ 315,000
Other business expenses (incl. deprecation taken on the storage building) $ 140,000
In 2019 Dean also sold various assets. The information about the selling price and depreciation of the property is listed below.
| Placed in Service / Purchased on |
Sold on |
Initial Cost |
2019 Depr. Amount |
Accumulated Depreciation. (Depr. Allowed) |
Tax Basis= Initial Cost – Depr. Allowed |
|
| Office tables |
4/4/2018 |
10/16/2019 For $2,900 |
$3,000 |
$375 |
$825 | |
| Office chairs |
3/1/2015 |
11/8/2019 For $4,000 |
$8,000 |
$1,000 |
$2,200 | |
| Marketable securities |
2/1/2019 |
12/1/2019 For $20,000 |
$12,000 |
$0 |
$0 | |
| Land held for investment |
7/1/2018 |
11/29/2019 For $48,000 |
$45,000 |
$0 |
$0 |
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