Required information Problem 10-54 (LO 10-2, LO 10-3) (Algo) Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2 and Table 5.) Asset Machinery Computer equipment Delivery truck* Furniture Total Date Placed in Service October 25 February 3 March 17 April 22 Problem 10-54 Part b (Algo) MACRS depreciation Original Basis *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $560,000. $ 96,000 36,000 49,000 176,000 $ 357,000 b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take §179 expense)?
Required information Problem 10-54 (LO 10-2, LO 10-3) (Algo) Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2 and Table 5.) Asset Machinery Computer equipment Delivery truck* Furniture Total Date Placed in Service October 25 February 3 March 17 April 22 Problem 10-54 Part b (Algo) MACRS depreciation Original Basis *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $560,000. $ 96,000 36,000 49,000 176,000 $ 357,000 b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take §179 expense)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required information
Problem 10-54 (LO 10-2, LO 10-3) (Algo)
Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179 expense
and bonus depreciation for this problem): (Use MACRS Table 1, Table 2 and Table 5.)
Asset
Machinery
Computer equipment
Delivery truck*
Furniture
Total
Date Placed in
Service
October 25
February 3
MACRS depreciation
March 17
April 22
Original
Basis
$ 96,000
36,000
49,000
176,000
$ 357,000
*The delivery truck is not a luxury automobile.
In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of
$560,000.
Problem 10-54 Part b (Algo)
b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus
depreciation (but does not take §179 expense)?
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