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personal use) costing $20,000: Placed i MACRS recovery period. ed in service on May 1, 2017 with a 7-y service on July 1, 2017.

personal use) costing $20,000: Placed i MACRS recovery period. ed in service on May 1, 2017 with a 7-y service on July 1, 2017.

FINANCIAL ACCOUNTING
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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1:10-27 MACRS 40% Test and Bonus Depreciation. Small Corporation purchased and placed in ser- vice the following 100% business-use assets (all of the assets were purchased new). Assume that Small purchased these assets in 2017, when 50% bonus depreciation was available. Small claimed bonus depreciation but no Sec. 179 election on all eligible property in 2017 and 2018. • Truck (light-duty, modified non-personal use) costing $20,000: Placed in service on February 15, 2017 with a 5-year MACRS recovery period. • Machinery costing $50,000: Placed in service on May 1, 2017 with a 7-year MACRS recovery period. • Land costing $60,000: Placed in service on July 1, 2017. • Building costing $100,000: Placed in service on December 1, 2017 with a 39-year MACRS recovery period. • Equipment costing $40,000: Acquired on December 24, 2017 and placed in service on January 5, 2018 with a 5-year MACRS recovery period. What is Small's total depreciation deduction in each year for 2017 through 2021?
Transcribed Image Text:1:10-27 MACRS 40% Test and Bonus Depreciation. Small Corporation purchased and placed in ser- vice the following 100% business-use assets (all of the assets were purchased new). Assume that Small purchased these assets in 2017, when 50% bonus depreciation was available. Small claimed bonus depreciation but no Sec. 179 election on all eligible property in 2017 and 2018. • Truck (light-duty, modified non-personal use) costing $20,000: Placed in service on February 15, 2017 with a 5-year MACRS recovery period. • Machinery costing $50,000: Placed in service on May 1, 2017 with a 7-year MACRS recovery period. • Land costing $60,000: Placed in service on July 1, 2017. • Building costing $100,000: Placed in service on December 1, 2017 with a 39-year MACRS recovery period. • Equipment costing $40,000: Acquired on December 24, 2017 and placed in service on January 5, 2018 with a 5-year MACRS recovery period. What is Small's total depreciation deduction in each year for 2017 through 2021?
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