Paul is self-employed as a dentist. He practices under the name "Paul J. Vance, DDS." Paul'sgross receipts during the year were $111,000. He uses the cash method of accounting. Hisbusiness deductible expense is $55458.In June 2019, Armando decided to refurbish his office. This project was completed and theassets placed in service on July 1. Armando's expenditures included $8,000 for new officefurniture, $6,000 for new dental equipment (seven-year recovery period), and $2,000 for a newcomputer. Armando elected to compute his cost recovery allowance using MACRS. He did notelect to use $179 immediate expensing, and he chose to not claim any bonus depreciation.Tax return for 2020, how to compute depreciation expense.

Calculation of Depreciation for new furniture = 5,000 x 14.29%…

pense is $55458. decided to refurbish his office. This project w eon July 1. Armando's expenditures included w dental equipment (seven-year recovery pe ected to compute his cost recovery allowance diate expensing, and he chose to not claim a v to compute depreciation expense.

pense is $55458. decided to refurbish his office. This project w eon July 1. Armando's expenditures included w dental equipment (seven-year recovery pe ected to compute his cost recovery allowance diate expensing, and he chose to not claim a v to compute depreciation expense.

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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Question

Paul is self-employed as a dentist. He practices under the name "Paul J. Vance, DDS." Paul's
gross receipts during the year were $111,000. He uses the cash method of accounting. His
business deductible expense is $55458.
In June 2019, Armando decided to refurbish his office. This project was completed and the
assets placed in service on July 1. Armando's expenditures included $8,000 for new office
furniture, $6,000 for new dental equipment (seven-year recovery period), and $2,000 for a new
computer. Armando elected to compute his cost recovery allowance using MACRS. He did not
elect to use $179 immediate expensing, and he chose to not claim any bonus depreciation.
Tax return for 2020, how to compute depreciation expense.

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