Assume that Sivart Corporation has 2024 taxable income of $1,750,000 for purposes of computing the §179 expense and acquired several assets during the year. Assume the delivery truck does not qualify for bonus depreciation.
asset
recover
in service date
basis
machinery
7
june 12
1,440,000
computer equip
5
feb. 10
70,000
used delivery truck
5
august 21
93,000
furniture
7
april 2
310,000
total
1,913,000
question: What is the maximum TOTAL depreciation (179, bonus, MACRS) that they may deduct in 2024? I have attached the MACRS table 1.
NOTE:
179: 2024, 179 expense rules: in 2024, 179 expense allows a business to expense up to 1,220,000 of qualified property placed in 2024. The maximum amount of qualified property placed in service in 24 over a 3,050,000 threshold. THE 179 is also limited to taxable income before the 179 expense.
BONUS: the bonus percentage is 60 percent in 2024, and TRUCK does not qualify.
Transcribed Image Text:Table 1 MACRS Half-Year Convention
Depreciation Rate for Recovery Period
3-Year
5-Year
7-Year
10-Year
15-Year 20-Year
Year 1
33.33%
20.00%
14.29%
10.00%
5.00%
3.750%
Year 2
44.45
32.00
24.49
18.00
9.50
7.219
Year 3
14.81
19.20
17.49
14.40
8.55
6.677 5.6
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
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