Question

Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and...

Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table2,and Table 5.)

Date Placed Original
Asset in Service Basis
Machinery October 25 $ 96,000
Computer equipment February 3 $ 36,000
Used delivery truck* March 17 $ 49,000
Furniture April 22 $ 176,000
Total $ 357,000

*The delivery truck is not a luxury automobile.

In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $560,000.

Problem 10-54 Part a

a. What is the allowable MACRS depreciation on Convers’s property in the current year assuming Convers does not elect §179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.)

b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take §179 expense)?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Calculation of the allowable MACRS depreciation:

Asset Place in service Quarter Original basis Rate Depreciation
Machinery October 25 4th $96,000 14.29% $13718.4004
Computer equipment February 3 1st $36,000 20.00% $7200
Used delivery truck March 17 1st $49,000 20.00% $9800
Furniture April 22 2nd $176,000 14.29% $25150.40
Qualified improvement May 12 2nd $560,000 1.605% $8988
Total $917000 $64856.7969

The general recovery period for machinery and furniture is 7 years, for computer equipment is 5 years, and for delivery truck is 5 years.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus...
Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.) Date Placed Original Asset in Service Basis Machinery October 25 $ 86,000 Computer equipment February 3 22,000 Used delivery truck* August 17 35,000 Furniture April 22 170,000 *The delivery truck is not a luxury automobile. a. What is the allowable MACRS depreciation on Evergreen’s property in the current year, assuming Evergreen does not...
Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus...
Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.) Date Placed Original Asset in Service Basis Machinery October 25 $ 76,000 Computer equipment February 3 14,500 Used delivery truck* August 17 27,500 Furniture April 22 157,500 *The delivery truck is not a luxury automobile. a. What is the allowable MACRS depreciation on Evergreen’s property in the current year, assuming Evergreen does not...
Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus...
Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.) Date Placed Original Asset in Service Basis Machinery October 25 $ 106,000 Computer equipment February 3 $ 37,000 Used delivery truck* August 17 $50,000 Furniture April 22 $195,000 *The delivery truck is not a luxury automobile. Problem 10-53 Part b. What is the allowable MACRS depreciation on Evergreen’s property in the current year...
Required information Problem 10-54 (LO 10-2; LO 10-3) Convers Corporation (calendar-year-end) acquired the following assets during...
Required information Problem 10-54 (LO 10-2; LO 10-3) Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2and Table 5.) Date Placed Original Asset in Service Basis Machinery October 25 $ 70,000 Computer equipment February 3 $ 10,000 Used delivery truck* March 17 $ 23,000 Furniture April 22 $ 150,000 Total $ 253,000 *The delivery truck is not a luxury automobile. In addition...
Convers Corporation (June 30 year-end) acquired the following assets during the current tax year (ignore §179...
Convers Corporation (June 30 year-end) acquired the following assets during the current tax year (ignore §179 expense and bonus depreciation for this problem): Placed in Original Asset Service Date Basis Machinery 21-Oct $ 91,500 Computer equipment 29-Jan 17,100 Used delivery truck* 8-Mar 26,000 Furniture 22-May 218,000 Total $ 352,600 *The delivery truck is not a luxury automobile. What is the allowable MACRS depreciation on Convers’s property in the current year? (Use MACRS Table 1, Table 2, Table 3, Table 4and...
Convers Corporation (June 30 year-end) acquired the following assets during the current tax year (ignore §179...
Convers Corporation (June 30 year-end) acquired the following assets during the current tax year (ignore §179 expense and bonus depreciation for this problem): Placed in Original Asset Service Date Basis Machinery October 17 $ 118,000 Computer equipment March 26 16,000 Used delivery truck* January 27 24,250 Furniture June 17 194,000 Total $ 352,250 *The delivery truck is not a luxury automobile. What is the allowable MACRS depreciation on Convers’s property in the current year? (Use MACRS Table 1, Table 2,...
Convers Corporation (June 30 year-end) acquired the following assets during the current tax year (ignore $179...
Convers Corporation (June 30 year-end) acquired the following assets during the current tax year (ignore $179 expense and bonus depreciation for this problem): Asset, Placed in service, original basis-Machinery, Oct 17, 118000, Computer equipment, March 26, 16000, Used delivery truck*, Jan 27, 24250, Furniture, June 17, 194000, for a total of 352250. *The delivery truck is not a luxury automobile. What is the allowable MARCS depreciation on Conver's property in the current year?
DLW Corporation acquired and placed in service the following assets during the year: Date Cost Asset...
DLW Corporation acquired and placed in service the following assets during the year: Date Cost Asset Acquired Basis Computer equipment 3/9 $ 15,800 Furniture 5/23 23,200 Commercial building 10/19 347,000 Assuming DLW does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. What is DLW's...
AMP Corporation (calendar-year-end) has 2018 taxable income of $1,000,000 for purposes of computing the §179 expense....
AMP Corporation (calendar-year-end) has 2018 taxable income of $1,000,000 for purposes of computing the §179 expense. During 2018, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Placed in Asset Service Basis Machinery September 12 $ 1,550,000 Computer equipment February 10 $ 365,000 Office building April 2 $ 480,000 Total $ 2,395,000 b. What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2018 on the assets...
1. Poplock Corporation acquired and placed in service the following assets during the year, 2019: Asset...
1. Poplock Corporation acquired and placed in service the following assets during the year, 2019: Asset Date Acquired Cost Basis Computer equipment 3/23 $7,000 Dog grooming furniture 5/12 $7,000 Pickup truck 9/17 $10,000 Commercial building 10/11 $270,000 Land (one acre) 10/11 $80,000 Assuming DLW does not elect §179 expensing or bonus depreciation. What is Poplock's year 2 total cost recovery for these assets? 2. DLW Corporation acquired and placed in service the following assets during the year, 2019: Asset Date...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT