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Furniture Equipment Machinery Date Placed in Service 6/19/17 5/2/16 9/30/16 Initial Cost $46,250 89,000 80,500 Accumulated Depreciation $17,936 63,368 57,316 Recovery Depreciation Period Convention 7-year Half-year 5-year Half-year 5-year Half-year On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $612,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Compute Hiram's maximum cost recovery deduction for 2019. In making your computation, assume that taxable income before depreciation exceeds $1,230,000. Use Table 7-2. (Enter all amounts as positive values. Round your intermediate computations and final answers

Furniture Equipment Machinery Date Placed in Service 6/19/17 5/2/16 9/30/16 Initial Cost $46,250 89,000 80,500 Accumulated Depreciation $17,936 63,368 57,316 Recovery Depreciation Period Convention 7-year Half-year 5-year Half-year 5-year Half-year On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $612,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Compute Hiram's maximum cost recovery deduction for 2019. In making your computation, assume that taxable income before depreciation exceeds $1,230,000. Use Table 7-2. (Enter all amounts as positive values. Round your intermediate computations and final answers

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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At the beginning of its 2019 tax year, Hiram owned the following business assets: Date Placed in Service 6/19/17 5/2/16 Accumulated Depreciation $17,936 Recovery Depreciation Period Convention 9/30/16 Furniture Equipment Machinery Furniture Equipment Machinery Initial Cost $46,250 89,000 80,500 Total MACRS Depreciation Section 179/bonus on new tools Total 2019 cost recovery On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $612,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Compute Hiram's maximum cost recovery deduction for 2019. In making your computation, assume that taxable income before depreciation exceeds $1,230,000. Use Table 7-2. (Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar amount.) 63,368 57,316 2019 MACRS Depreciation Half-year 7-year 5-year Half-year 5-year Half-year
Transcribed Image Text:At the beginning of its 2019 tax year, Hiram owned the following business assets: Date Placed in Service 6/19/17 5/2/16 Accumulated Depreciation $17,936 Recovery Depreciation Period Convention 9/30/16 Furniture Equipment Machinery Furniture Equipment Machinery Initial Cost $46,250 89,000 80,500 Total MACRS Depreciation Section 179/bonus on new tools Total 2019 cost recovery On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $612,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Compute Hiram's maximum cost recovery deduction for 2019. In making your computation, assume that taxable income before depreciation exceeds $1,230,000. Use Table 7-2. (Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar amount.) 63,368 57,316 2019 MACRS Depreciation Half-year 7-year 5-year Half-year 5-year Half-year
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