During 2021, Pepe Guardio purchases the following property for use in his calendar year-end manufacturing business: Cost Item Manufacturing equipment (7 year) Office furniture Office computer Passenger automobile (used 85 percent for business) Warehouse Date Acquired June 2 September 15 November 18 May 31 July 23 Building Land $ 50,000 8,000 2,000 55,000 170,000 135,000 Pepe uses the accelerated depreciation method under MACRS, if available, and does not make the election to expense and elects out of bonus depreciation. What information is needed to calculate depreciation expense for this problem?

During 2021, Pepe Guardio purchases the following property for use in his calendar year-end manufacturing business: Cost Item Manufacturing equipment (7 year) Office furniture Office computer Passenger automobile (used 85 percent for business) Warehouse Date Acquired June 2 September 15 November 18 May 31 July 23 Building Land $ 50,000 8,000 2,000 55,000 170,000 135,000 Pepe uses the accelerated depreciation method under MACRS, if available, and does not make the election to expense and elects out of bonus depreciation. What information is needed to calculate depreciation expense for this problem?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter8: Depreciation And Sale Of Business Property

Section: Chapter Questions

Problem 15MCQ

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Sir please urgently
Prepare the complete Depreciation and Amortisation Form 4562.
Part 4: M. Dodge purchased a duplex on January 15, 2020 for $300,000. It is estimated $200,000 is attributable to building. The two units are identical in size, for purposes of CCA class, the property is considered to be a single unit. Note the following: January, 2020, purchased furniture and appliances for one of the units at a total cost of $10,000. For 2020, both units were rented, rental revenue was $30,000 and incurred expenses, other than CCA, of $9,000. In September, 2021, the tenants moved out and purchased all the furniture and appliances for 8,000. deducts the maximum. Calculate the rental income for 2020. Also, determine the UCC balances on January 1, 2022. Include in your solution any income tax consequences associated with the sale of the furniture and appliances.
Alice purchases a rental house on August 22,2019, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining $74,000 allocable to the cost of the land. What is Alice's maximum depreciation deduction for 2019 using MACRS? $2,373 $1,970 $1,364 $1,061 $1,009
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During 2021, Pepe Guardio purchases the following property for use in his calendar year-end manufacturing business: Manufacturing equipment (7 year) Office furniture Office computer Item Passenger automobile (used 85 percent for business) Warehouse Date Acquired June 2 September 15 November 18 May 31 July 23 Building Land Cost $ 50,000 8,000 2,000 55,000 170,000 135,000 Pepe uses the accelerated depreciation method under MACRS, if available, and does not make the election to expense and elects out of bonus depreciation. Use Form 4562 to report Pepe's depreciation expense for 2021.
Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations. If required, round your answers to nearest dollar. a. Amber Corporation donated inventory of clothing (basis of $128,500, fair market value of $160,625) to a qualified charitable organization that operates homeless shelters. X
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I need help please James Inc. purchased the following assets in February 2022 for a total price of $2,900,000. Below are the assets with their corresponding fair market value: Asset Description Fair Market Value Equipment $650,000 Office Furniture 1,190,000 Computer Equipment 960,000 Required: Calculate the depreciation in 2022 for the office furniture assuming they elect to use section 179 on the office furniture.
Dane ASA bothpurchases and constructs various equipment it uses in its operations. The followingitems for two different types of equipment were recorded in random order during thecalendar year 2019. PurchaseCash paid for equipment, including sales tax of €5,000 €105,000Freight and insurance cost while in transit 2,000Cost of moving equipment into place at factory 3,100Wage cost for technicians to test equipment 6,000Insurance premium paid during first year of operation on this equipment 1,500Special plumbing fixtures required for new equipment 8,000Repair cost incurred in first year of operations related to this equipment 1,300ConstructionMaterial and purchased parts (gross cost €200,000; failed to take 1% cashdiscount)€200,000Imputed interest on funds used during construction (share financing) 14,000Labor costs 190,000Allocated overhead costs (fixed—€20,000; variable—€30,000) 50,000Profit on self-construction 30,000Cost of installing equipment 4,400InstructionsCompute the total cost…
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