In February 2021, Pietra acquired a new automobile for $82,000 and used the automobile 80% for business. In 2022 her business use of the auto was 70%. Pietra's depreciation deduction for 2022 will be a. $11,270. b. $18,368. c. $12,670. d. $4,032.

In February 2021, Pietra acquired a new automobile for $82,000 and used the automobile 80% for business. In 2022 her business use of the auto was 70%. Pietra's depreciation deduction for 2022 will be a. $11,270. b. $18,368. c. $12,670. d. $4,032.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Allison acquires and places in service business equipment (a 5-year class asset) on February 1,…

A: Cost of the asset is the value of the asset which is recorded when it is purchased, when it is sold,…

Q: Euclid places in service

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: 2020. The corporation’s depreciation for the building for 2020 will be approximately:

Q: What is the amount of the adjusted basis of the automobile for purposes of computing depreciation in…

A: Internal Revenue Service issued standard mileage rates used to calculate the deductible costs of…

Q: ine at a cost of $70, ears and a salvage va ear asset, that Ben c , and that Ben purch

A: Given as, Cost of the Machine = $ 70,000 Salvage Value = $ 10,000

Q: Taylor LLC purchased an automobile for $55,000 on July 5, 2019. What is Taylor's maximum…

A: Depreciation is a non-cash expense.Depreciation is charged on fixed asset over a estimated useful…

Q: On September 14, 2022, Jay purchased

A: MACRS [Modified Accelerated Cost Recovery System] Depreciation: It is a standard depreciation…

Q: On May 31, 2021, Javier Sanchez purchased and placed in service a new 7-year class asset costing…

A: Depreciation is the measure of a decrease in the monetary value of an asset. The value of an asset…

Q: Euclid acquires a 7-year class asset on May 9, 2021, for $80,000 (the only asset acquired during the…

A: Calculation of cost recovery deduction are as follows

Q: On 30 April 2020, Business Taxpayer sold an office building it had placed in service on 1 August…

A: Depreciation - It is method of accounting to allocate cost of assets over a useful life of assets.

Q: equired: With reference to relevant legislation and case law, discuss and calculate what amount is…

A: Introduction: Depreciation: Depreciation is a charge on the fixed assets that reduces its value.…

Q: On April 5, 2023, Kinsey places in service a new automobile that cost $58,250. He does not elect §…

A: MACRS or the Modified Accelerated Cost Recovery System places fixed assets into classes that have…

Q: On June 5, 2018, Roxy Company purchases a passenger auto for $60,000. Roxy does not take a Sec. 179…

Q: Bennie, a sole proprietor, opened his new business on January 1, 2022, and had $7,500 in business…

A: In the world of finance, amortization is the process of gradually lowering an intangible asset's or…

Q: 1. During 2018, Axel Corporation purchases machinery (5-year property) for $120,000 and decides not…

A: Depreciation: The word "depreciation" refers to an accounting procedure that is used to spread the…

Q: In July 2017, Lenux Corporation (a calendar-year taxpayer) purchased $2,140,000 of new office…

A: The office furniture is put to use in July 2017. therefore half-year convention is used. An office…

Q: Conversion of Personal Asset to Business Use. Sid purchased an automobile for personal use on…

A: Here discuss about the MACRS deprecation which are applicable for the assets which are incurred to…

Q: On April 5, 2023, Kinsey places in service a new automobile that cost $70,000. He does not elect §…

A: MACRS or the Modified Accelerated Cost Recovery System places fixed assets into classes that have…

Q: Diana acquires, for $84, 800, and places in service a 5-year class asset on December 19, 2023. It is…

A: Bonus depreciation is a tax incentive that allows businesses to deduct a larger portion of the cost…

Q: Max purchases a new auto in 2022 at a cost of $56,000. He uses the car 80 percent for business.…

A: Depreciation is the process through which the expense of utilizing a tangible item is linked to the…

Q: On May 1 , 2020, Helen places in service a new automobile that cost $25,000. It was the only asset…

A: Any expenditure (other than covered under section 30 to 36) shall be allowed if the following…

Q: Taylor LLC purchased an automobile for $55,000 on July 5, 2020. What is Taylor's maximum…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Lars acquired a new network

A: The maximum amount you can elect to deduct for most section 179 property you placed in service…

Q: 39. Simpson Company, a calendar year taxpayer, acquires an apartment building on May 22, 2023 for…

A: The Simpson Company purchased the apartment building on May 22, 2023, and put it into operation the…

Q: Sid bought a new $1,320,000 seven-year class asset on August 2, 2020 On December 2, 2020, he…

A: Cost recovery is known as the concept which provides deduction or decreases limit in the desired…

Q: a. McKenzie's § 179 expense deduction is $ for 2022. His § 179 carryover to 2023 is $ b. How would…

A: A deduction is an outflow that can be deducted from a taxpayer's gross income in order to decrease…

Q: une 17, 2021, Tom bought listed property (10- class) for $50,000. He it 35% personally, 40% for…

Q: On May 28, 2020, Mary purchased and placed in service a new $60,000 car. The car was used 60% for…

A: 1.

Q: On February 17, 2021, Brecken places in service an automobile that cost $23,000. Assume Brecken does…

A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…

Q: Lars acquired a new network system on June 5, 2023 (five-year class property), for $69,000. She…

A: To determine Lars's maximum cost recovery deduction for the purchases made in 2023, we will…

Q: Nancy purchased new business computers (7-year property) in January for a total of $1,200,000. She…

A: §179 of Internal Revenue Code states that the business owners have an option to deduct the entire…

Q: On August 4, 2021, calendar year taxpayer Ben Baker acquires and places in service in his sole…

A: Introduction: Depreciation is the process of reducing the complete cost of an expensive item…

Q: On July 10, 2023, Ariff places in service a new SUV that cost $70,000 and weighed 6,300 pounds. The…

A: If a sport utility vehicle (SUV) is exempt from the annual “luxury car” depreciation caps, the…

Q: Andre acquired a computer on March 3, 2019, for $2,800. He elects the straight-line method for cost…

A: Answer:- One way to record the cost of any expense is through the cost recover approach. The cost…

Q: Tax Drill - AMT and Depreciation In 2019, Brennen sold a machine used in his business for $180,000.…

A: Alternative minimum tax (AMT) is that amount of tax which is least and which has to be paid by the…

Q: On July 15, 2019, Leo purchased and placed in service a new car that cost $52,200. The business use…

A: Depreciation is the method in which the cost of the asset is allocated over its estimated useful…

Q: Alexandra purchased a $55,800 automobile during 2020. The business use was 70 percent. What is the…

A: solution : Alexandra purchased a $55,800 automobile during 2020. The business use was 70 percent.…

Q: Nancy purchased a projector screen on July 15, 2019, for $1,200. The screen was used 70% of the time…

A: Nancy purchased a projector which costs $1200 on July 15, 2019, which is partly used for business…

Q: On June 1, 2020, Irene plačes in is used 70% for business and 30% for personal use. (Assume this…

A: Step 1 Cost recovery refers to the deduction of a portion of the cost of an asset, used in a…

Q: Alexandra purchased a $55,200 automobile during 2021. The business use was 60 percent. What is the…

A: In this question, we will calculate the allowable depreciation for the current year .

Q: On June 1, 2022, Leo purchased and placed in service a new car that cost $79,600. The business use…

A: Here discuss about the details of the depreciation for deduction which are applicable for Modified…

Q: Zachary purchased a Ford Expedition (more than 6,000 lb) for $39,000 in March 2023. What is the…

A: b. $28,900.Explanation:Here's why:Section 179 Deduction:Under IRS code Section 179, businesses can…

Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

In February 2021, Pietra acquired a new automobile for $82,000 and used the automobile 80% for business. In 2022 her business use of the auto was 70%. Pietra's depreciation deduction for 2022 will be

a.

$11,270.

b.

$18,368.

c.

$12,670.

d.

$4,032.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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.
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.
Zaki LLC purchased computer equipment (five-year property) on April 20, 2018, for $36,000 and used the half-year convention to depreciate it. Zaki did not take Section 179 or bonus depreciation in the year it acquired the furniture. In 2021, which is the fourth year Zaki LLC owned the property, the property was disposed of on November 10. What is Zaki's depreciation expense for 2021? MACRS tables.pdf O $518. O $2,074. O $2,248. O $4,147.
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: $
For his business, McKenzie purchased qualifying equipment that cost $212,000 in 2019. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment? McKenzie's § 179 expense deduction is ___________ for 2019?
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.
Nancy purchased new business computers (5-year property) in January for a total of $1,300,000. She plans to take advantage of §179 expensing and MACRS depreciation (but not first year additional depreciation). What is the total amount of her depreciation deduction?
On October 1, 2019, Priscilla purchased a business. Of the purchase price, $60,000 is allocated to a patent and $375,000 is allocated to goodwill. Calculate Priscilla’s 2019 § 197 amortization deduction.
Bhaskar purchased a new factory building and land on September 10, 2021, for $3,700,000. ($500,000 of the purchase price was allocated to the land.) He elected the alternative depreciation system (ADS). Determine the cost recovery deduction for 2022. O $80,000 Ob. $82,048 O $21,328 Od $92,500
Andy purchased a new desk for $750 on May 1, 2021. He immediately placed it into service for his accounting business. He will depreciate it using the 200% declining balance method and the half-year convention. How much is his 2021 depreciation deduction? A.$75 B.$107 C.$150 D.$750