Homework Help is Here – Start Your Trial Now!
Business
Finance
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. TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Half-Year Convention Recovery Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5   11.52 8.93 9.22 6.93 5.713 6   5.76 8.92 7.37 6.23 5.285 7     8.93 6.55 5.90 4.888 8     4.46 6.55 5.90 4.522 9       6.56 5.91 4.462 10       6.55 5.90 4.461 11       3.28 5.91 4.462 12         5.90 4.461 13         5.91 4.462 14         5.90 4.461 15         5.91 4.462 16         2.95 4.461 17           4.462 18           4.461 19           4.462 20           4.461 21           2.231 * May not be used for farm business property generally placed in service after 1988. See Table 14, Rev. Proc. 87-57, 1987-2 CB 687.

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. TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Half-Year Convention Recovery Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5   11.52 8.93 9.22 6.93 5.713 6   5.76 8.92 7.37 6.23 5.285 7     8.93 6.55 5.90 4.888 8     4.46 6.55 5.90 4.522 9       6.56 5.91 4.462 10       6.55 5.90 4.461 11       3.28 5.91 4.462 12         5.90 4.461 13         5.91 4.462 14         5.90 4.461 15         5.91 4.462 16         2.95 4.461 17           4.462 18           4.461 19           4.462 20           4.461 21           2.231 * May not be used for farm business property generally placed in service after 1988. See Table 14, Rev. Proc. 87-57, 1987-2 CB 687.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question

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.

TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line*

Half-Year Convention
Recovery Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year
1 33.33 20.00 14.29 10.00 5.00 3.750
2 44.45 32.00 24.49 18.00 9.50 7.219
3 14.81 19.20 17.49 14.40 8.55 6.677
4 7.41 11.52 12.49 11.52 7.70 6.177
5   11.52 8.93 9.22 6.93 5.713
6   5.76 8.92 7.37 6.23 5.285
7     8.93 6.55 5.90 4.888
8     4.46 6.55 5.90 4.522
9       6.56 5.91 4.462
10       6.55 5.90 4.461
11       3.28 5.91 4.462
12         5.90 4.461
13         5.91 4.462
14         5.90 4.461
15         5.91 4.462
16         2.95 4.461
17           4.462
18           4.461
19           4.462
20           4.461
21           2.231
* May not be used for farm business property generally placed in service after 1988. See Table 14, Rev. Proc. 87-57, 1987-2 CB 687.

 

Expert Solution
steps

Step by step

Solved in 1 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS