Line following information applies to the questions displayed below.At the beginning of the current year, Poplock began a calendar-year dog boarding business called Griff's Palace. Poplockbought and placed in service the following assets during the year:AssetComputer equipmentDog-grooming furniturePickup truckCommercial buildingLand (one acre)AssetComputer equipmentDog-grooming furniturePickup truckDate Acquired Cost Basis3/235/129/1710/1110/11Assuming Poplock does not elect 5179 expensing and elects not to use bonus depreciation, answer the following.questions: (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5.)Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave noanswer blank. Enter zero if applicable.Commercial buildingLand (one acre)TotalWhat is Poplock's year 1 depreciation deduction for each asset?$$9,00011,00010,000310,000120,000DepreciationDeduction At the beginning of the current year, Poplock began a calendar-year dog boarding business called Griff's Palace. Poplockbought and placed in service the following assets during the year:AssetComputer equipmentDog-grooming furniturePickup truckCommercial building.Land (one acre)Assuming Poplock does not elect §179 expensing and elects not to use bonus depreciation, answer the followingquestions: (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5.)Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave noanswer blank. Enter zero if applicable.Assetb. What is Poplock's year 2 depreciation deduction for each asset?Computer equipmentDog-grooming furniturePickup truckDate Acquired3/235/129/1710/1110/11Commercial buildingLand (one acre)Total$Cost Basis$ 9,00011,00010,000310,000120,000DepreciationDeduction

Depriciation is the fall in the value of an asset due to normal wear and tear during its…

[ine following information applies to the questions displayed below. At the beginning of the current year, Poplock began a calendar-year dog boarding business called Griff's Palace, Poplock bought and placed in service the following assets during the year: Asset Computer equipment Dog-grooming furniture Pickup truck Commercial building Land (one acre) Assuming Poplock does not elect 5179 expensing and elects not to use bonus depreciation, answer the following. questions: (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5.) Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable. Asset Computer equipment Dog-grooming furniture Pickup truck Date Acquired Cost Basis 3/23 $9,000 5/12 11,000 10,000 310,000 120,000 What is Poplock's year 1 depreciation deduction for each asset? Commercial building Land (one acre) Total 9/17 10/11 10/11 $ Depreciation Deduction

[ine following information applies to the questions displayed below. At the beginning of the current year, Poplock began a calendar-year dog boarding business called Griff's Palace, Poplock bought and placed in service the following assets during the year: Asset Computer equipment Dog-grooming furniture Pickup truck Commercial building Land (one acre) Assuming Poplock does not elect 5179 expensing and elects not to use bonus depreciation, answer the following. questions: (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5.) Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable. Asset Computer equipment Dog-grooming furniture Pickup truck Date Acquired Cost Basis 3/23 $9,000 5/12 11,000 10,000 310,000 120,000 What is Poplock's year 1 depreciation deduction for each asset? Commercial building Land (one acre) Total 9/17 10/11 10/11 $ Depreciation Deduction

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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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.
! Required information [The following information applies to the questions displayed below.] At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $95,000. It is expected to have a five-year life and a $15,000 salvage value. c. Prepare the journal entries to recognize depreciation for each of the five years, assuming that the company uses: (1) Straight-line depreciation. (2) Double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Req C1 Req C2 Prepare the journal entries to recognize depreciation for each of the five years, assuming that the company uses straight-line depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record depreciation expense.
On November 10 of year 1, Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,200,000; $300,000 was allocated to the basis of the land and the remaining $900,000 was allocated to the basis of the building. a) Assume the building was purchased and placed in service on March 3 instead of November 10. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3? b) Assume the building is residential property. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3?c) What would be the depreciation for 2022, 2023, and 2024 if the property were nonresidential property purchased and placed in service November 10, 2005 (assume the same original basis)?
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.
Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2 and Table 5.) Date Placed in Original Asset Service Basis Machinery Computer equipment Delivery truck* $ 92,000 32,000 45,000 172,000 October 25 February 3 March 17 Furniture April 22 Total $ 341,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $520,000. Problem 10-54 Part a (Algo) a. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect $179 expense and elects out of bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) MACRS depreciation
! Required information [The following information applies to the questions displayed below.] Burbank Corporation (calendar-year-end) acquired the following property this year: (Use MACRS Table 1. Table 2, and Exhibit 10-10.) Asset Used copier New computer equipment Furniture New delivery truck Luxury auto Total Placed in Service November 12 June 6 Maximum cost recovery deduction July 15 October 28 January 31 Basis $ 12,200 18,400 36,400 23,400 74,400 $ 164,800 Burbank acquired the copier in a tax-deferred transaction when the shareholder contributed the copier to the business in exchange for stock. Note: Round your answer to the nearest whole dollar amount. Check my work a. Assuming no bonus or §179 expense, what is Burbank's maximum cost recovery deduction for this year?
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: $
a. What is Poplock's year 1 depreciation deduction for each asset? Asset Computer equipment Dog-grooming furniture Pickup truck Commercial building Land (one acre) Total (9 $ (9) (9 $ $ Depreciation Deduction 1,840 1,600 2,000 5,440
Required information [The following information applies to the questions displayed below.] Assume that Sivart Corporation has 2023 taxable income of $1,750,000 for purposes of computing the §179 expense and acquired several assets during the year. Assume the delivery truck does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Placed in Service Basis Machinery Asset Computer equipment Delivery Truck-used Furniture Total June 12 February 10 August 21 April 2 $ 1,440,000 70,000 93,000 310,000 $ 1,913,000 b. What is the maximum total depreciation ($179, bonus, MACRS) that Sivart may deduct in 2023 on the assets it placed in service in 2023? Answer is complete but not entirely correct. Maximum total depreciation deduction (including §179 expense) $ 1,254,242 x
(half-year convention) West Coast Products Corp. (WCP) purchased new computer equipment for its administrative offices and used machinery to use in manufacturing its products. The computer equipment cost $600,000 and was installed and placed in service in March 2022 and the machinery cost $810,000 and was installed and placed in service in September 2022. WCP does not elect §179 expense and elects out of bonus depreciation. Calculate WCP’s depreciation for the computer equipment and for the machinery for 2022 and 2023.
On January 20, 2022, Javier Sanchez purchased and placed in service a new 7-year class asset costing $419,600 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 $503,520 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: $ 31,381 Total cost recovery deduction in 2023: $ 53,780 b. Complete Javier's Form 4562 (page 1) for 2022. Note: For 2022, the maximum § 179 is…
Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.) 2018 Asset Machinery Computer equipment Used delivery truck* Furniture Date Placed in Service October 25 February 3 August 17 April 22 $ Original Basis 102,000 34,000 47,000 190,000 *The delivery truck is not a luxury automobile a. What is the allowable MACRS depreciation on Evergreen's property in the current year assuming Evergreen does not elect §179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.) b. What would be the allowable MACRS depreciation on Evergreen's property in the current year if Evergreen does not elect out of bonus depreciation?