Woolard Supplies (a sole proprietorship) has taxable income in 2021 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Asset Placed In Service Basis Office furniture (used) March 20 $ 1,200,000 b. If Woolard elects the maximum amount of §179 for the year, what is the amount of deductible §179 expense for the year? What is the total depreciation that Woolard may deduct in 2021? What is Woolard's §179 carryforward amount to next year, if any? O Answer is not complete. Deductible $179 expense $ 217,136 ( Total depreciation deduction §179 carryforward $ 240,000
Woolard Supplies (a sole proprietorship) has taxable income in 2021 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Asset Placed In Service Basis Office furniture (used) March 20 $ 1,200,000 b. If Woolard elects the maximum amount of §179 for the year, what is the amount of deductible §179 expense for the year? What is the total depreciation that Woolard may deduct in 2021? What is Woolard's §179 carryforward amount to next year, if any? O Answer is not complete. Deductible $179 expense $ 217,136 ( Total depreciation deduction §179 carryforward $ 240,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Woolard Supplies (a sole proprietorship) has taxable income in
2021 of $240,000 before any depreciation deductions (§179,
bonus, or MACRS) and placed some office furniture into
service during the year. The furniture does not qualify for
bonus depreciation. (Use MACRS Table 1, Table 2, Table 3,
Table 4 and Table 5.) (Do not round intermediate
calculations. Round your answers to the nearest whole
dollar amount.)
Asset
Placed In
Service
Basis
Office furniture (used)
March 20
$ 1,200,000
b. If Woolard elects the maximum amount of §179 for the year, what is the
amount of deductible §179 expense for the year? What is the total depreciation
that Woolard may deduct in 2021? What is Woolard's §179 carryforward amount
to next year, if any?
O Answer is not complete.
Deductible $179 expense
$ 217,136 (
Total depreciation deduction
§179 carryforward
$ 240,000
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