E AA A Bhibit 8.6 Alternative Minimum Tax: 150% Declining-Balance AssumingHalf-Year Convention (Percentage Rates)For Property Placed in Service after December 31, 1986 (Partial Table*)RecoveryYear3-Year150%5-Year150%7-Year150%9.5-Year150%10-Year12-Year150%150%125.0015.0010.7137.507.897.506.2525.5019.1314.5425.00**13.8811.7217.8515.03412.2511.7910.2512.5016.66**12.25**510.3110.028.9716.6612.259.17**6.8.74**7.858.3312.259.178.747.33**712.259.178.747.338.6.139.178.747.339.9.178.747.33109.168.747.33114.377.32127.33133.668:4559°F Partly sunny2/20/2hp ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3falsessetеВookExercise 8-19 (Algorithmic) (LO. 2)Euclid acquires a 7-year class asset on May 9, 2020, for $96,600 (the only asset acquired during the year). Euclid does not elect immediateexpensing under 5 179. He does not claim any available additional first-year depreciation.Click here to access the depreciation table to use for this problem.If required, round your answers to the nearest dollar.Calculate Euclid's cost recovery deduction for 2020 and 2021.2020: $2021:Check My WorkNext59°F Partly sunny7:32 PM2/20/202

Cost Recovery Deduction: When a company uses depreciation, amortisation, or depletion to reduce the…

Euclid acquires a 7-year class asset on May 9, 2020, for $96,600 (the only asset acquired during the year). Euclid does not elect immediate expensing under 5 179. He does not claim any available additional first-year depreciation. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Calculate Euclid's cost recovery deduction for 2020 and 2021. 2020: $ 2021: $

Euclid acquires a 7-year class asset on May 9, 2020, for $96,600 (the only asset acquired during the year). Euclid does not elect immediate expensing under 5 179. He does not claim any available additional first-year depreciation. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Calculate Euclid's cost recovery deduction for 2020 and 2021. 2020: $ 2021: $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Nancy purchased a projector screen on July 15, 2019, for $1,200. The screen was used 70% of the time in her business and the rest of the time her children used the screen to watch movies. In 2019, the computer was used 40% for business and 60% for personal use. What are the cost recovery deductions for 2019 and 2020? (No §179 or bonus). Is there any recapture of depreciation in 2020?
Alexandra purchased a $55,200 automobile during 2021. The business use was 60 percent. What is the allowable depreciation for the current year? (Ignore any possible bonus depreciation.)
Lars acquired a new network system on June 5, 2023 (five-year class property), for $69,000. She expects taxable income from the business will always be about $215,000 without regard to the §179 election. Lars will elect §179 expensing. She also acquired seven-year property in July 2023 for $430,000. (Use Table 6A-1) Required: Determine Lars’s maximum cost recovery deduction with respect to her purchases in 2023.
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.
On November 23, 2023, Hamlet acquires and places in service a 7-year class asset with a cost of $491,400 (the only asset acquired during the year). Hamlet does not elect immediate expensing under § 179. He does not claim any available additional first-year (bonus) depreciation. This is Hamlet's only tangible personal property acquisition for the year. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Calculate Hamlet's cost recovery deduction for 2023 and 2024. 2023: $ X 2024: $
On June 5, 2022, Leo purchased and placed in service a new car that cost $75,000. The business use percentage for the car is always 100%. Leo does not elect § 179 expensing, and does not claim any available additional first-year depreciation. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. Click here to access the limits for certain automobiles. a. What MACRS convention applies to the new car? Half-year b. Is the automobile considered "listed property"? Yes c. Leo's cost recovery deduction in 2022 is $ 10,200 X and for 2023 is $ 16,400 X.
On May 31, 2022, Javier Sanchez purchased and placed in service a new 7-year class asset costing $470,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost. During 2022, his business generated a net income of $564,000 before any § 179 immediate expense election. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deductions (including first-year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2022 and 2023. Total cost recovery deduction in 2022: Total cost recovery deduction in 2023: $
L0.2 Andre acquired a computer on March 3, 2019, for $2,800. He elects the straight-line method for cost recovery.Andre does not elect immediate expensing under § 179.He does not claim any available additional fast-year depreciation. Calculate Andre's cost recovery deduction for the computer for tax years 2019 and 2020.
On September 14, 2021, Jay purchased a passenger automobile that is used 75 percent in his business. The automobile has a basis for depreciation purposes of $45,000, and Jay uses the accelerated method under MACRS. Jay does not elect to expense under section 179. Calculate Jay's depreciation deduction for 2021 assuming bonus depreciation.
Tonia acquires the following 5-year class property in 2019: Asset Date of Acquisition Cost X January 15 $ 70,000 Y May 28 45,000 Z November 23 90,000 Total $ 205,000 Tonia does not elect §179 or bonus depreciation. Tonia has $300,000 of taxable income from her business. Determine her total cost recovery deduction for the year.
On June 1, 2020, Sandalwood Corporation purchases a passenger automobile for 100 percent use in its business. The automobile is in the 5 year cost recovery class and has a basis for depreciation of $60,000. Assuming that the corporation elects the accelerated method of cost recovery for the asset and does not elect to expense any of its cost or take bonus depreciation, what is the total tax depreciation deduction for the 2020 calendar tax year (Year 1)? a.$18,100 b.$12,000 c.$11,160 d.$10,100 e.None of these choices are correct.
On January 20, 2022, Javier Sanchez purchased and placed in service a new 7-year class asset costing $419,600 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost. During 2022, his business generated a net income of $503,520 before any § 179 immediate expense election. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deductions (including first-year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2022 and 2023. Total cost recovery deduction in 2022: $ 31,381 Total cost recovery deduction in 2023: $ 53,780 b. Complete Javier's Form 4562 (page 1) for 2022. Note: For 2022, the maximum § 179 is…