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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
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
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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 .
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 17-4 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
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.
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.
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