On June 1, 2021, Leo purchased and placed in service a new car that cost $69,600. The business usepercentage for the car is always 100%. He does not take the additional first-year depreciation or any§ 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table ofthe textbook. Click here to access the limits for certain automobiles. a. What MACRS convention appliesto the new car? Half-year b. Is the automobile considered "listed property"? Yes c. Leo's cost recoverydeduction in 2021 is $fill in the blank 3 and for 2022 is $fill in the blank 4.

Under the Section 179 depreciation elected of MACRS, the maximum amount of limit for first year (1st…

ine 1, 2021, Leo purchased and placed in service a new car that cost $69,600. The business use ntage for the car is always 100%. He does not take the additional first-year depreciation or any If required, round your answers to the nearest dollar. Click here to access the depreciation table of xtbook. Click here to access the limits for certain automobiles. a. What MACRS convention applies new car? Half-year b. Is the automobile considered "listed property"? Yes c. Leo's cost recovery

ine 1, 2021, Leo purchased and placed in service a new car that cost $69,600. The business use ntage for the car is always 100%. He does not take the additional first-year depreciation or any If required, round your answers to the nearest dollar. Click here to access the depreciation table of xtbook. Click here to access the limits for certain automobiles. a. What MACRS convention applies new car? Half-year b. Is the automobile considered "listed property"? Yes c. Leo's cost recovery

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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Zachary purchased a Ford Expedition (more than 6,000 lb) for $39,000 in March 2023. What is the maximum depreciation expense allowed, assuming that Zachary is eligible for the I R C §179 expense election and no bonus is elected? a. $7,800. b. $28,900. c. $30,920. d. $39,000.
ces On May 12, 2022, Nelson Incorporated purchased eight passenger automobiles for its business. Nelson did not make a Section 179 election to expense any portion of the cost of the automobiles, which are five-year recovery property subject to the half-year convention. Assume there is no bonus depreciation or Section 179 deduction. Use Table 7-1 and Table 7-2. Use the below table for annual depreciation deduction for year 2022 to 2025: 2022 2023 2024 2025 and subsequent years $ 11, 200 18,000 10,800 6,460 Required: a. Compute Nelson's depreciation deduction with respect to the automobiles for 2022 and 2023 assuming the automobiles were Mini Coopers costing $14,300 each. b. Compute Nelson's depreciation deduction with respect to the automobiles for 2022 and 2023 assuming the automobiles were Cadillacs costing $60,000 each. Complete this question by entering your answers in the tabs below. Required A Required B
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.
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