Alice purchases a rental house on August 22,2019, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining $74,000 allocable to the cost of the land. What is Alice's maximum depreciation deduction for 2019 using MACRS? $2,373 $1,970 $1,364 $1,061 $1,009

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Answer 1

Textbook Question

Chapter 8, Problem 1MCQ

Alice purchases a rental house on August 22,2019, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining $74,000 allocable to the cost of the land. What is Alice's maximum depreciation deduction for 2019 using MACRS?

$2,373
$1,970
$1,364
$1,061
$1,009

Expert Solution & Answer

To determine

Introduction:The modified accelerated cost recovery system (MACRS) is a method of depreciation used for tax purposes in the U.S. It enables taxpayers to recover the capitalized cost of an asset over its life annually as per tax law.

To choose:The correct answer to determine the maximum depreciation deduction for 2019 using MACRS.

Answer to Problem 1MCQ

Final answer is [c] $1,364

Explanation of Solution

Calculation of maximum depreciation deduction for 2019 on real property assuming mid-month conversion will be for the month of August:

Depreciation=$100,000×1.364%=$1,364

Therefore, option c is the correct option.

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Howard James started a business in 2011 in Jamaica and has been operating in the wholesale/retail industries, where he buys and sells household items to the local market. In 2012, he expanded his business operations and opened two other businesses in Trinidad and Tobago and Antigua and Barbuda, respectively. The annual sales of the respective businesses in 2015 are: Jamaica: J$3,000.00 Trinidad and Tobago: TT$251,000.00 Antigua and Barbuda: $299.00 Mr. James failed to register his business for VAT/GCT as specified by the respective Sales Tax Acts and Regulations. He stated that there is no need for his businesses to be registered because their sales are under the VAT thresholds and thus not required to be registered. a) You are to advise Mr. James if his decision not to register his businesses is justifiable. b) Search the respective VAT Acts for the 3 countries and advise Mr. James of the benefits of being a registered taxpayer; also the penalties for not registering for VAT/GCT.

Get correct answer general accounting question

Answer 2

Textbook Question

Chapter 8, Problem 1MCQ

Alice purchases a rental house on August 22,2019, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining $74,000 allocable to the cost of the land. What is Alice's maximum depreciation deduction for 2019 using MACRS?

$2,373
$1,970
$1,364
$1,061
$1,009

Expert Solution & Answer

To determine

Introduction:The modified accelerated cost recovery system (MACRS) is a method of depreciation used for tax purposes in the U.S. It enables taxpayers to recover the capitalized cost of an asset over its life annually as per tax law.

To choose:The correct answer to determine the maximum depreciation deduction for 2019 using MACRS.

Answer to Problem 1MCQ

Final answer is [c] $1,364

Explanation of Solution

Calculation of maximum depreciation deduction for 2019 on real property assuming mid-month conversion will be for the month of August:

Depreciation=$100,000×1.364%=$1,364

Therefore, option c is the correct option.

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Answer 3

Textbook Question

Chapter 8, Problem 1MCQ

Alice purchases a rental house on August 22,2019, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining $74,000 allocable to the cost of the land. What is Alice's maximum depreciation deduction for 2019 using MACRS?

$2,373
$1,970
$1,364
$1,061
$1,009

Expert Solution & Answer

To determine

Introduction:The modified accelerated cost recovery system (MACRS) is a method of depreciation used for tax purposes in the U.S. It enables taxpayers to recover the capitalized cost of an asset over its life annually as per tax law.

To choose:The correct answer to determine the maximum depreciation deduction for 2019 using MACRS.

Answer to Problem 1MCQ

Final answer is [c] $1,364

Explanation of Solution

Calculation of maximum depreciation deduction for 2019 on real property assuming mid-month conversion will be for the month of August:

Depreciation=$100,000×1.364%=$1,364

Therefore, option c is the correct option.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 8, Problem 1MCQ

Alice purchases a rental house on August 22,2019, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining $74,000 allocable to the cost of the land. What is Alice's maximum depreciation deduction for 2019 using MACRS?

$2,373
$1,970
$1,364
$1,061
$1,009

Expert Solution & Answer

To determine

Introduction:The modified accelerated cost recovery system (MACRS) is a method of depreciation used for tax purposes in the U.S. It enables taxpayers to recover the capitalized cost of an asset over its life annually as per tax law.

To choose:The correct answer to determine the maximum depreciation deduction for 2019 using MACRS.

Answer to Problem 1MCQ

Final answer is [c] $1,364

Explanation of Solution

Calculation of maximum depreciation deduction for 2019 on real property assuming mid-month conversion will be for the month of August:

Depreciation=$100,000×1.364%=$1,364

Therefore, option c is the correct option.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Introduction:The modified accelerated cost recovery system (MACRS) is a method of depreciation used for tax purposes in the U.S. It enables taxpayers to recover the capitalized cost of an asset over its life annually as per tax law.

To choose:The correct answer to determine the maximum depreciation deduction for 2019 using MACRS.

Answer to Problem 1MCQ

Final answer is [c] $1,364

Explanation of Solution

Calculation of maximum depreciation deduction for 2019 on real property assuming mid-month conversion will be for the month of August:

Depreciation=$100,000×1.364%=$1,364

Therefore, option c is the correct option.

Answer 8

Expert Solution & Answer

To determine

Introduction:The modified accelerated cost recovery system (MACRS) is a method of depreciation used for tax purposes in the U.S. It enables taxpayers to recover the capitalized cost of an asset over its life annually as per tax law.

To choose:The correct answer to determine the maximum depreciation deduction for 2019 using MACRS.

Answer to Problem 1MCQ

Final answer is [c] $1,364

Explanation of Solution

Calculation of maximum depreciation deduction for 2019 on real property assuming mid-month conversion will be for the month of August:

Depreciation=$100,000×1.364%=$1,364

Therefore, option c is the correct option.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Introduction:The modified accelerated cost recovery system (MACRS) is a method of depreciation used for tax purposes in the U.S. It enables taxpayers to recover the capitalized cost of an asset over its life annually as per tax law.

To choose:The correct answer to determine the maximum depreciation deduction for 2019 using MACRS.