Required information [The following information applies to the questions displayed below.] Woolard Supplies (a sole proprietorship) has taxable income in 2020 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Placed In Service Asset Office furniture (used) March 20 §179 expense Basis $1,171,000 c. Woolard is concerned about future limitations on its §179 expense. How much §179 expense should Woolard expense this year if it wants to maximize its depreciation this year and avoid any carryover to future years?

Required information [The following information applies to the questions displayed below.] Woolard Supplies (a sole proprietorship) has taxable income in 2020 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Placed In Service Asset Office furniture (used) March 20 §179 expense Basis $1,171,000 c. Woolard is concerned about future limitations on its §179 expense. How much §179 expense should Woolard expense this year if it wants to maximize its depreciation this year and avoid any carryover to future years?

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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[The following information applies to the questions displayed below.] DLW Corporation acquired and placed in service the following assets during the year: Asset Computer equipment Furniture Commercial building Assuming DLW does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. What is DLW's year 1 cost recovery for each asset? Asset Date Acquired 2/26 2/26 12/20 Computer equipment Furniture Commercial building Total Year 1 Cost Recovery $ Cost Basis $ 19,500 $ 18,000 $ 341,000 3,900 2,572 9,050 15,522
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Woolard Supplies (a sole proprietorship) has taxable income in 2023 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Asset Office furniture (used) Problem 10-62 Part b (Static) Placed In Service March 20 Basis $ 1,200,000 b. If Woolard elects the maximum amount of §179 for the year, what is the amount of deductible §179 expense for the year? What is the total depreciation that Woolard may deduct in 2023? What is Woolard's §179 carryforward amount to next year, if any? X Answer is complete but not entirely correct. Deductible $179 expense $ 211,420 X Total depreciation deduction $ 240,000 §179 carryforward $ 788,580 X
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R corpaoration purchased equipment very late in 2026. Based on gernous capital cost allowance rate provided in the income tax act .R>Corporation claimed CCA on its 2026 tax return, but did not record anu deprecation as the equipment had not yet been put into use. This temporary difference will reverse and cause taxable amount of $30,00 In 2017, $36,000 in 2028, and $48,000 in 2029. R corporation accounting income for 2026 is $360,000 and the tax rate is 20% for all years. There are no future accounts at the beginning of 2026. Required A) calculate the future income tax balance at December 31, 2026. Is this future tax asset to a future tax liability Calculate taxable income and income taxes payable for 2026 Prepare appropriate journal entries to record income taxes for 2026 2. Assume that Corporation reports accounting income of $290,000 for 2027, and no other temporarily differences other than the one identified part 1 above: Calculate the future income tax balance at…
Required Information Problem 09-59 (LO 09-4) (Algo) [The following information applies to the questions displayed below.] Georgio owns a 10 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses: Sales revenue Gain on sale of land ($1231) Cost of goods sold Depreciation-MACRS §179 deduction* Employee wages Nondeductible fines and penalties Municipal bond interest Short-term capital gains. Guaranteed payment to Sandra *Assume the §179 property placed in service limitation does not apply. Description Problem 09-59 Part a (Algo) a. How much ordinary business income (loss) is allocated to Georgio for the year? Sales revenue Ordinary Business Income $ 85,000 13,600 (46,750) (4,250) (14,500) Total Amount Allocated to Georgio (20,000) (3,800) 7,300 6,150 (3,700)
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