Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased duringthe year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn't want to take bonus depreciation for2021 or 2022) in the following alternative scenarios (assuming half-year convention for allI): (Use MACRS Table 1, Table 2,and Exhibit 10-10.)d. The vehicle cost $92,000, and she used it 80 percent for business. She sold it on March 1 of year 2.DepreciationdeductionYear20212022

Depreciation deduction refers to the tax benefit that allows businesses and individuals to deduct a…

Answered: Lina purchased a new car for use in her…

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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Similar questions

On March 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the building is $700,000. Holly also owns another residential apartment building that she purchased on October 15, 2019, with a cost basis of $400,000. Click here to access the depreciation tables. a. Calculate Holly's total depreciation deduction for the apartments for 2019 using MACRS.$fill in the blank 98b1bc044f93fcc_1 b. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS.
mary is starting her own horse racing and breeding farm in paducah, KY in the current year. She purchased the following assets on April 28: one year old filly=4380, machinery= 34800, light duty truck= 44200, and land=67200. If mary does not elect section 179 or use bonus depreciation, what is her first year depreciation deduction?
Shellie purchased a passenger automobile on March 2, 2018. She paid $65,000 for the automobile and can support business use of 85 percent. Calculate the amount of depreciation on the automobile for 2018 using the accelerated MACRS method (if available), assuming Shellie does not make the election to expense or claim bonus depreciation
! Required information [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.) c. The vehicle cost $84,600, and she used it 80 percent for business. Depreciation deduction Year 2023 $ 12,200 2024 $ 19,500
In July 2021, Cassie purchases equipment for $55,000 to be used in her business. Assuming Cassie has a small net loss from her business prior to the deduction, what is the maximum amount of cost recovery Cassie can deduct? a. $55,000 b. $7,860 c. $27,500 d. $31,430
Jameson owns several residential rental properties. In May 2021, he purchased a new stove and refrigerator and placed the items in service in one of his rental houses. He elected not to claim the special depreciation allowance that year. In November 2023, Jameson sold the house, including the appliances. After factoring in depreciation, he had a loss on the sale of both the stove and the refrigerator. Where on Form 4797 should Jameson's loss from the sale of these appliances be reported? Part I. Part II. Part III. Part IV.
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.) f. The vehicle cost $84,800, and is an SUV that weighs 6,500 pounds. Business use was 100 percent. Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92…
Dana forms a small manufacturing company. Her company places the following ng properties into service during the year, on the dates indicated: Type of property Date placed in service Cost_____ Business building April 6 $275,000 Furniture June 5 $57,000 Machinery September 2 $65,000 Computer December 27 $25,000 She chooses not to do any Section 179 expense, and also elects not to take bonus depreciation. She uses MACRS depreciation. Calculate the first year depreciation on the building, and also on the machinery:
In the year 2021, John spends $37.000 on a new automobile. What is the maximum permitted deduction for the car in 2021 if he claims 100 percent bonus depreciation?
Greg purchased a new Mercedes Benz for $68,000 on February 10, 2022. He used the car 90% for his business during the year. What maximum amount of depreciation is he eligible to claim on the car for 2022?
! Required information [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.) b. The vehicle cost $80,000, and business use is 100 percent. Year 2023 2024 Depreciation deduction
On October 15, 2023, Jon purchased and placed in service a used car. The purchase price was $38,000. This was the only business use asset Jon acquired in 2023. He used the car 80% of the time for business and 20% for personal use. Jon used the regular MACRS method. Calculate the total maximum deduction Jon may take for 2023 with respect to the car, if he (a) elects out of bonus deprecation, and (b) if he takes bonus depreciation. (This differs from the question asked in the text.) If he elects out of bonus depreciation: If bonus is taken (because it was NOT elected out):

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