Lenter LLC placed in service on April 29, 2022 machinery and equipment (7-year property) with a basis of $600,000. Assume that Lenter has sufficient Income to avoid any limitations. Calculate the maximum depreciation expense Including section 179 expensing (but Ignoring bonus expensing). Using the 2022 §179 limits. $600,000 $150,000 $120,000 $85,740

Lenter LLC placed in service on April 29, 2022 machinery and equipment (7-year property) with a basis of $600,000. Assume that Lenter has sufficient Income to avoid any limitations. Calculate the maximum depreciation expense Including section 179 expensing (but Ignoring bonus expensing). Using the 2022 §179 limits. $600,000 $150,000 $120,000 $85,740

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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Chaz Corporation has taxable income in 2022 of $314,200 for purposes of computing the §179 expense and acquired the following assets during the year: Asset Office furniture Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total Placed in Service September 12 February 10 August 21 September 30 Basis $ 802,000 952,000 90,000 1,521,000 $ 3,365,000 What is the maximum total depreciation deduction that Chaz may deduct in 2022? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
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Bennet Company purchased a patent from Arnold Company on January 1, 2021 for $450,000. Arnold Company had used the patent for five years prior to selling it to Bennet Company. Assuming Bennet Company plans to use the patent for its full useful life, what amount of amortization expense would Bennet Company record on its 2021 income statement? O $30,000 O $25,000 O $22,500 $37,500 O There is not enough information to answer the question.
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AMP Corporation (calendar year-end) has 2022 taxable income of $1,900,000 for purposes of computing the $179 expense. During 2022, AMP acquired the following assets: (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5) Asset Machinery Computer equipment Office building Total Placed in Service September 12 Basis $ 1,390,000 February 101 April 2 415,000 $ 2,335,000 530,000 b. What is the maximum total depreciation, Including $179 expense, that AMP may deduct in 2022 on the assets it placed in service in 2022, assuming no bonus depreciation? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Maximum total depreciation (including $170 expense), $ 1,315,000