[The following information applies to the questions displayed below.]Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn’t want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.)e. The vehicle cost $92,000, and she used it 20 percent for business.There is a table below this text:| Year | Depreciation Deduction ||------|------------------------|| 2021 | || 2022 | | ## MACRS Mid-Quarter Convention Tables### OverviewThese tables provide the Modified Accelerated Cost Recovery System (MACRS) depreciation rates for properties placed in service during different quarters of the year. The rates apply to recovery periods either spanning 5 years or 7 years. The tables are organized by the quarter in which the property is placed in service.### Table 2a: First QuarterFor properties placed in service during the first quarter:| Year | 5-Year | 7-Year ||------|--------|--------|| Year 1 | 25.00% | 17.85% || Year 2 | 30.00% | 23.47% || Year 3 | 18.00% | 16.76% || Year 4 | 11.37% | 11.97% || Year 5 | 11.37% | 8.87% || Year 6 | 4.26% | 8.87% || Year 7 | | 8.87% || Year 8 | | 3.34% |### Table 2b: Second QuarterFor properties placed in service during the second quarter:| Year | 5-Year | 7-Year ||------|--------|--------|| Year 1 | 15.00% | 10.71% || Year 2 | 34.00% | 25.51% || Year 3 | 20.40% | 18.22% || Year 4 | 12.24% | 13.02% || Year 5 | 11.30% | 9.30% || Year 6 | 7.06% | 8.85% || Year 7 | | 8.86% || Year 8 | | 5.53% |### Table 2c: Third QuarterFor properties placed in service during the third quarter:| Year | 5-Year | 7-Year ||--------|--------|--------|| Year 1 | 5.00% | 3.57% || Year 2 | 38.00% | 27.55% || Year 3 | 22.80% | 19.68% ||

Depreciation refers to the amount by which is charged on fixed assets and by which the asset value…

[The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including $179 expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) e. The vehicle cost $92,000, and she used it 20 percent for business. Depreciation deduction Year 2021 2022

[The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including $179 expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) e. The vehicle cost $92,000, and she used it 20 percent for business. Depreciation deduction Year 2021 2022

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Jean Brochet uses an automobile in a business he carries on as a sole proprietor. The automobile cost $53,000 in 2022 and is not a zero-emission vehicle, with maximum CCA claimed in that year. Assume that the automobile was eligible for the Accll. The purchase was financed with a bank loan of $37,000. In 2023, the interest on this loan totaled $4,440. The automobile is used exclusively for business purposes, with the 2023 operating expenses totaling $7,500. What is the maximum automobile deduction that can be claimed for 2023? $19,875. $16,760. $16,890. $24,665.
! Required information [The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2023. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including $179 expense unless stated otherwise) for the automobile in 2023 and 2024 (Lina doesn't want to take bonus depreciation for 2023 or 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1. Table 2, and Exhibit 10-10.) c. The vehicle cost $84,600, and she used it 80 percent for business. Depreciation deduction Year 2023 $ 12,200 2024 $ 19,500
Alpesh
Jos is a Sales Manager. He uses his own car to travel to various locations. He acquired the car on 1 October 2021 for $60,000. The acquisition cost was funded entirely by a loan at an interest rate of 15%. He has determined that the depreciation deduction on the car would be $2,300 for the year. In addition, Jos incurred the following expenses during the year: Registration and insurance = $2,000; Repairs and maintenance = $1,000; and Oil and fuel costs = $1,500. For the period 1 October 2021 to 30 June 2022, Jos estimates that the car travelled 15,000 kilometres, 12,000 of which were for business purposes. You may assume that Jos has maintained all necessary records and a logbook. Required: Calculate Jos's deduction for car expenses under the two methods (cent per kilometre rate 0.72 and logbook) in Div 28 of Income Tax Assessment Act 1997. Assume that depreciation has been adjusted for part-year use and the impact of the car limit
jacob lived in his house as his house as his primary residencefrom 2018, when purchased for 175,000.the assessment at that time showed the land value 15,000. he made no improvements while he lived there, and in 2021 he converted the proprty to rental use. in early 2022 he spent 15,000 on a kitchen renovation before selling it in december of 2022. what is jacobs adjusted basis in the house before any allowable depreciation when he sold it? 160,000 173717 175000 190000
Lina purchased a new car for use in her business during 2023. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2023 and 2024 (Lina doesn't want to take bonus depreciation for 2023 or 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) f. The vehicle cost $84,800, and is an SUV that weighs 6,500 pounds. Business use was 100 percent. 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 Year 4 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92…
Review the following scenario. Use the information provided to answer questions about the taxpayer’s 2020 return.Liam Hernandez (38) paid $112,000 for a single-family home on July 1, 2020, and immediately placed it in service as a residential rental property. At the time, the land was valued at $10,000. The property generated $6,000 in rental income for the year. Liam’s only expenses consisted of depreciation, $500 in insurance, and $750 in real estate taxes.Liam is not a real estate professional, but he does actively participate in his rental real estate activity. He did not provide any personal services during the year, although he has notified his tenant that he will make minor repairs to the property as needed. Liam has no other passive income or losses. Question 1 What amount should Liam report for his total rental real estate and royalty income? His partially completed Schedule E, Supplemental Income and Loss, is shown below. You may use the form to assist you in answering this…
In the year 2021, John spends $37.000 on a new automobile. What is the maximum permitted deduction for the car in 2021 if he claims 100 percent bonus depreciation?
Greg purchased a new Mercedes Benz for $68,000 on February 10, 2022. He used the car 90% for his business during the year. What maximum amount of depreciation is he eligible to claim on the car for 2022?
Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) d. The vehicle cost $92,000, and she used it 80 percent for business. She sold it on March 1 of year 2. X Answer is complete but not entirely correct. Depreciation deduction Year 2021 $ 14,560 X 2022 $ 13,120 X
Emil purchased an apartment building in 2016 for $200, 000 and made improvements over time in the amount of $50,000. The initial purchase included $15,000 for land value. Emil took all allowable depreciation, totaling $54, 000. He sold the entire property in 2022 for $350, 000, with no sale expenses. What are his total gains on the building and improvements only, reported in Part III of Form 4797?
Emil purchased an apartment building in 2016 for $200, 000 and made improvements over time in the amount of $50,000. The initial purchase included $15,000 for land value. Emil took all allowable depreciation, totaling $54, 000. He sold the entire property in 2022 for $350, 000, with no sale expenses. What are his total gains on the building and improvements only, reported in Part III of Form 4797?