Required information Problem 10-54 (LO 10-2, LO 10-3) (Static) 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 Original Basis $ 70,000 February 3 March 17 April 22 10,000 23,000 150,000 $ 253,000 *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 $300,000. Problem 10-54 Part a (Static) 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? Answer is complete but not entirely correct. MACRS depreciation $ 97,154 X
Required information Problem 10-54 (LO 10-2, LO 10-3) (Static) 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 Original Basis $ 70,000 February 3 March 17 April 22 10,000 23,000 150,000 $ 253,000 *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 $300,000. Problem 10-54 Part a (Static) 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? Answer is complete but not entirely correct. MACRS depreciation $ 97,154 X
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 7BCRQ
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Vinubhai
Transcribed Image Text:Required information
Problem 10-54 (LO 10-2, LO 10-3) (Static)
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
Original
Basis
$ 70,000
February 3
March 17
April 22
10,000
23,000
150,000
$ 253,000
*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
$300,000.
Problem 10-54 Part a (Static)
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?
Answer is complete but not entirely correct.
MACRS depreciation
$ 97,154 X
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