Suppose a computer software developer for a certain company purchased a computer system for 55,000 on April 27, 2017.  The computer system is used for business 100% of the time. The  Accountant for the company elected to take 20,000 section 179 deduction and the asset qualified for a special depreciation allowance .  A- what was the basis for depreciation in dollars  of the computer system . Table 17–4.  B- what was the amount in dollars for the first year‘s appreciation use an MACRSC table 17–1
Suppose a computer software developer for a certain company purchased a computer system for 55,000 on April 27, 2017.  The computer system is used for business 100% of the time. The  Accountant for the company elected to take 20,000 section 179 deduction and the asset qualified for a special depreciation allowance .  A- what was the basis for depreciation in dollars  of the computer system . Table 17–4.  B- what was the amount in dollars for the first year‘s appreciation use an MACRSC table 17–1
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
100%
Suppose a computer software developer for a certain company purchased a computer system for 55,000 on April 27, 2017.  The computer system is used for business 100% of the time. The  Accountant for the company elected to take 20,000 section 179 deduction and the asset qualified for a special depreciation allowance . 
A- what was the basis for depreciation in dollars  of the computer system . Table 17–4. 
B- what was the amount in dollars for the first year‘s appreciation use an MACRSC table 17–1 and 17–2 .
Transcribed Image Text:TABLE 17-4 Special Depreciation Allowance
:9:
Certain Qualified
Asset Placed into Service
4
September 11, 2001-May 5, 2003
May 6, 2003-January 1, 2005
December 31, 2007-September 27, 2017
September 28, 2017-December 31, 2022
80
F4
MacBook Air
AA
F7
Special Allowance
30%
50%
50%
100%
DII
FR
DD
(1)
F11
F12
Transcribed Image Text:TABLE 17-1 MACRS Property Classes (Recovery Period) General Depreciation System
3-Year Property (3 years)
5-Year Property (5 years)
Automobiles and taxis
Buses and trucks
Over-the-road tractors
Some horses and hogs
Special handling devices for the
manufacture of food and beverages
Specialty tools used in the manufacture
of motor vehicles
Computers and peripherals
Office machinery
Specialty tools used in the manufacture
of finished products made of plastic,
rubber, glass, and metal
10-Year Property (10 years)
Vessels, barges, and tugs
Single-purpose agricultural structures
Trees and vines bearing fruits or nuts
Assets used in the production of grain, sugar,
and vegetable oil products
Assets used in petroleum refining
Assets used in the manufacture and repair of
ships, boats, and marine drilling rigs
25-Year Property (25 years)
Municipal sewers
Certain water utility property integral to
the gathering, treatment, or commercial
distribution of water
Breeding or dairy cattle, sheep and goats
Airplanes (except those in commercial use)
Trailers and trailer-mounted containers
Assets used in construction
Assets used in the manufacture of knitted
goods, textile yarns, carpets, medical
and dental supplies, chemicals, and
electronic components
Assets used in radio and television
broadcasting, and CATV
15-Year Property (15 years)
Depreciable improvements made to land,
such as shrubbery, fences, roads, and
bridges
Assets used to manufacture cement
Gas and petroleum utility pipelines
Industrial steam and electric generation and/
or distribution systems
Water taxis and ferry boats
Residential Rental Property (27.5 years)
This is any building or structure, such as a
rental home (including a mobile home), if
80% of its gross rental income for the tax
year is from dwelling units. A dwelling
unit is a house or an apartment used to
provide living accommodations.
7-Year Property (7 years)
Office furniture and fixtures
Railroad cars and engines
Commercial airplanes
Assets used in the manufacture of wood,
pulp, and paper products
Assets used in printing and publishing
Assets used in the production of tobacco,
leather, stone, and steel products
Assets used in the production of sporting
goods, toys, jewelry, and musical
instruments
Assets used in theme and amusement
parks, theaters, concert halls, and
miniature golf courses
20-Year Property (20 years)
Farm buildings
Railroad structures and improvements
Communication cable and long-line
systems
Water, electric, gas, and steam utility
plants and equipment
Nonresidential Real Property (39 years)
This is property such as an office
building, a store, or a warehouse that
is not residential rental property.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education