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 MACRS depreciation *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 $620,000. Original Basis oblem 10-54 Part a (Algo) What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect §179 pense and elects out of bonus depreciation? te: Round your intermediate calculations and final answer to the nearest whole dollar amount. $ $ 102,000 42,000 55,000 182,000 $ 381,000 5
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 MACRS depreciation *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 $620,000. Original Basis oblem 10-54 Part a (Algo) What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect §179 pense and elects out of bonus depreciation? te: Round your intermediate calculations and final answer to the nearest whole dollar amount. $ $ 102,000 42,000 55,000 182,000 $ 381,000 5
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
March 17
April 22
MACRS depreciation
*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
$620,000.
Problem 10-54 Part a (Algo)
a. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect §179
expense and elects out of bonus depreciation?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
Original
Basis
$ 102,000
42,000
55,000
182,000
$ 381,000
$
5
Transcribed Image Text: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)?
Answer is complete but not entirely correct.
MACRS depreciation
$ 390,951 X
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