What are MACRS deductions for assets placed in service in tax years beginning before 2022 of following below? Depreciable property that Rapid Appliance Repair purchased and placed into service prior to 2022 consisted of the following: Description: Building for Business Date Placed into service: 1/1/2008 Purchase Price: $200,000 Business Use: 100% Description: Computer System Date Placed into service: Computer System Purchase Price: $1000 Business Use: 100% Stanley did not claim a Section 179 deduction or any bonus depreciation for these assets when they were purchased. In addition, he did not elect any alternative methods. He only used the MACRS method to depreciate the assets. The year an asset is placed into service is year 1, so year 1 for the building would be 2008. You need to decide what year 2022 would be for depreciation.

What are MACRS deductions for assets placed in service in tax years beginning before 2022 of following below? Depreciable property that Rapid Appliance Repair purchased and placed into service prior to 2022 consisted of the following: Description: Building for Business Date Placed into service: 1/1/2008 Purchase Price: $200,000 Business Use: 100% Description: Computer System Date Placed into service: Computer System Purchase Price: $1000 Business Use: 100% Stanley did not claim a Section 179 deduction or any bonus depreciation for these assets when they were purchased. In addition, he did not elect any alternative methods. He only used the MACRS method to depreciate the assets. The year an asset is placed into service is year 1, so year 1 for the building would be 2008. You need to decide what year 2022 would be for depreciation.

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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AMP Corporation (calendar year-end) has 2022 taxable income of $1,900,000 for purposes of computing the $179 expense. During 2022, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Placed in Service Machinery September 12 Computer equipment Office building February 10 April 2 Basis $ 1,550,000 365,000 480,000 Total $ 2,395,000 b. What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2022 on the assets it placed in service in 2022, assuming no bonus depreciation?
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