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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Pincer Company uses the declining balance depreciation method. It buys a machine for $110,400 that has an unknown salvage value and applies a 60% rate. The machine stays in service for 3 full years and is sold for $12,560 on the first day of year 4. Round all answers to the nearest dollar (no cents). Required 1: What depreciation expense will Pincer record in year 2? $ Required 2: What depreciation expense will Pincer record in year 3? $ Required 3: What accumulated depreciation will Pincer Co report at the end of year 2? $ Required 4: What accumulated depreciation will Pincer Co report at the end of year 3? $ Required 5: What is the net book value of the machine that Pincer Co reports at the end of year 2? $ Required 6: What is the net book value of the machine that Pincer Co reports at the end of year 3 provided the selling price is already known? $
On April 30, 2021, Leo purchased and placed in service a new car that cost $69,600. The business use percentage 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 of the textbook. 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 2021 is $ 10,000 X and for 2022 is $ 16,000 X
! Required information Problem 10-67 (LO 10-3) (Algo) [The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2023. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2023 and 2024 (Lina doesn't want to take bonus depreciation for 2023 or 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1. Table 2, and Exhibit 10-10.) Problem 10-67 Part c (Algo) c. The vehicle cost $82,400, and she used it 80 percent for business. Year 2023 2024 Depreciation deduction $6,592 $ 13,184
On February 17, 2021, Brecken places in service an automobile that cost $23,000. Assume Brecken does not claim the additional first-year or any § 179 deduction. The auto is used 35% for business and 65% for personal use. Assume the luxury automobile limitations for Year 1 is $10,100. Click here to access the depreciation table to use for this problem. a. Compute the total depreciation allowed for 2021: b. Assume that the automobile cost $45,000. Compute the total depreciation allowed for 2021:
Required information Problem 10-67 (LO 10-3) (Algo) [The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2023. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2023 and 2024 (Lina doesn't want to take bonus depreciation for 2023 or 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) Problem 10-67 Part b (Algo) b. The vehicle cost $82,000, and business use is 100 percent. Year 2023 2024 Depreciation deduction $ 12,200
Nancy purchased new business computers (7-year property) in January for a total of $1,200,000. 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?
Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $65,000, and it has claimed $23,000 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leav no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.) Required: a. Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $50,000, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $20,000 in cash in year O and a $50,000 note receivable that is payable in year 1, compute th amount and character of Hauswirth's gain or loss in year O and in year 1. Complete this question by…
On October 12, 2023, Simarov, Inc. purchases a Copyright to a song, written by a person who died on October 12, 1963 for $50,000 cash. Simarov believes they will be able to generate revenue from the Copyright for the remaining useful life. Prepare the journal entry to record the purchase. DR: CR: What is the remaining useful life of the Copyright? How much amortization expense will Simarov record each year? years Prepare the adjusting journal entry to record one year's amortization. DR: CR: What is the Net Book Value of the Copyright on October 1, 2027?
pols On April 5, 2020, Kinsey places in service a new automobile that cost $60,000. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 70% for business and 30% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Assume the following luxury automobile limitations: year 1: $10,100; year 2: $16,100. Compute the total depreciation allowed for 2020 and 2021.
Ayayai Corporation purchases a patent from Blossom Company on January 1, 2025, for $63,000. The patent has a remaining legal life of 14 years. Ayayai estimates the patent will have a useful life of 10 years, based on expected product innovations in the market. Prepare Ayayai's journal entries to record the purchase of the patent and 2025 amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record purchase of patents) (To record amortization of patents) Debit Credit
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?