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
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

5

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?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education