In 2020, Company W elected under Section 179 to expense $19,300 of the cost of qualifying property. However, it could deduct only $15,000 of the expense because of the taxable income limitation. In 2021, Company W's taxable income before any Section 179 deduction was $1,812,000. Required: a. Compute its 2021 Section 179 deduction if the total cost of qualifying property purchased in 2021 was $13,600. b. Compute its 2021 Section 179 deduction if the total cost of qualifying property purchased in 2021 was $1,048,000. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute its 2021 Section 179 deduction if the total cost of qualifying property Deduction $ 1,040,000 X < Required A Required B > sed in 2021 was $1,048,000.

In 2020, Company W elected under Section 179 to expense $19,300 of the cost of qualifying property. However, it could deduct only $15,000 of the expense because of the taxable income limitation. In 2021, Company W's taxable income before any Section 179 deduction was $1,812,000. Required: a. Compute its 2021 Section 179 deduction if the total cost of qualifying property purchased in 2021 was $13,600. b. Compute its 2021 Section 179 deduction if the total cost of qualifying property purchased in 2021 was $1,048,000. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute its 2021 Section 179 deduction if the total cost of qualifying property Deduction $ 1,040,000 X < Required A Required B > sed in 2021 was $1,048,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Review Examples 50 and 52 (Section 1231 Computations) in the text. In both examples, the taxpayer's AGI is $129,400 even though in Example 52 there is $700 of nonrecaptured § 1231 loss from 2018. As part of the § 1231 lookback provision any net gain is______(either added to or offset against) any ______(either, nonrecaptured net § 1231 losses or recaptured net § 1231 losses) from the______ (either two three or five) prior tax years. Therefore, the $700 from 2018 results in part of the 2019 net § 1231 gain to be treated as_______(either a capital gain a nontaxable gain or ordinary income) Please fill in the blanks?
Exercise 15-15 (Algorithmic) (LO. 3, 4) Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC records net income of $291,500 after deducting Robert's $87,450 salary. In addition to his compensation, ABC pays Robert dividends of $204,050. a. What is Robert's qualified business income? 291,500 b. What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $177,450? 87,450
A taxpayer places a $1,050,000 5-year recovery period asset in service in 2020. This is the only asset placed in service in 2020. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)? a.$210,000 b.$1,040,000 c.$1,026,000 d.$1,050,000 e.$1,042,000
Required information [The following information applies to the questions displayed below.] Woolard Supplies (a sole proprietorship) has taxable income in 2020 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Placed In Service Asset Office furniture (used) March 20 §179 expense Basis $1,171,000 c. Woolard is concerned about future limitations on its §179 expense. How much §179 expense should Woolard expense this year if it wants to maximize its depreciation this year and avoid any carryover to future years?
In 2021, Peter Quill had a 5 179 deduction carryover of $40,000. In 2022, Peter elected 5 179 for an asset acquired at a cost of $120,000. Peter's $ 179 business income imitation for 2022 is $130.000. Determine Peter's § 179 deduction for 2022 O a $25,000 Ob $115,000 Oc$130,000 Od $140,000
During 2021, Cullumber Company purchased the net assets of Riverbed Corporation for $2206600. On the date of the transaction, Riverbed had $601800 of liabilities. The fair value of Riverbed's assets when acquired were as follows: Current assets $1083240 Noncurrent assets 2527560 $3610800 How should the $802400 difference between the fair value of the net assets acquired ($3009000) and the cost ($2206600) be accounted for by Cullumber? O The current assets should be recorded at $1083240 and the noncurrent assets should be recorded at $1725160. O A deferred credit of $802400 should be set up and then amortized to income over a period not to exceed forty years. O The $802400 difference should be recognized as a gain. O The $802400 difference should be credited to retained earnings.
Godo Subject: acounting
During 2020, Sienar Systems, Inc purchased Correalian Drives, Inc. (one of its suppliers) using the assets method. As a part of this business, it was determined the company purchased 1,200,000 of Goodwill. a. How much is the book to tax difference with this purchase in 2020 and is it temporary or permanent?
01. Martin owns land that is classified as PPE. The land has previously been valued at cost. The land will be revalued using the revaluation model to its fair value on December 31 (the company's year-end). Before revaluation, the land's carrying value was $100,000. The fair value is $125,000 as of December 31, 2021. What journal entry is required to record the revaluation? What entry would've been made if the fair value on December 31, 2022, is $90,000? 02. 1,000,000 of XYZ's no-par common shares were initially offered at a price of $13, Later, XYZ bought back 6,000 shares of these shares at $ 17 a share. XYZ is incorporated under the Canada business corporation Act and therefore retired these shares. Requirement Record the retirement of the shares. 03. ABC. declare a dividend of $100,000 and pays it all at once. Provide the journal entry needed to document the $100,000 dividend if: The dividend is paid in cash The dividend is paid in company stock (stock dividend)
Required information [The following information applies to the questions displayed below.] Woolard Supplies (a sole proprietorship) has taxable income in 2023 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Asset Office furniture (used) Placed In Service Basis March 20 $ 1,179,000 b. If Woolard elects the maximum amount of $179 for the year, what is the amount of deductible §179 expense for the year? What is the total depreciation that Woolard may deduct in 2023? What is Woolard's §179 carryforward amount to next year, if any? Deductible §179 expense Total depreciation deduction §179 carryforward
A taxpayer sold machinery for $24,000 on December 31, 2021. The machinery had been purchased on January 2, 2019 for $30,000, with 100% bonus depreciation being used. For 2021, the taxpayer should report O Ordinary income of $24,000 O $30,000 ordinary income O §1231 gain of $6,000 and ordinary income of $24,000 O §1231 gain of $24,000 and ordinary income of $6,000 O $1231 gain of $24,000 D
At the beginning of 2021, Blossom Co. purchased an asset for $2300000 with an estimated useful life of 5 years and an estimated salvage value of $160000. For financial reporting purposes the asset is being depreciated using the straight-line method; for tax purposes the double-declining-balance method is being used. Blossom Co.’s tax rate is 20% for 2021 and all future years.At the end of 2021, which of the following deferred tax accounts and balances is reported on Blossom’s balance sheet? Account Balance Deferred tax liability $85600 Deferred tax liability $98400 Deferred tax asset $98400 Deferred tax asset $85600