Question

In July of 2017 a taxpayer purchased a new computer system for $3800. (1) What is...

In July of 2017 a taxpayer purchased a new computer system for $3800. (1) What is the total depreciation if he claims special depreciation? (2) What is the total depreciation if he opts out of special depreciation? The only options to answer this question are either 380, 760, 1900 or 2280. 2850 is not an option.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: Option 1 Opts for Special depreciation

Cost of new Computer = $3,800

Special Depreciation or Bonus Depreciation before September 2017 is 50% of qualifying Assets

Bonus Depreciation is 50% as the Asset was purchased in July 2017.

Bonus/special Depreciation in first year = $3,800 X 50% = $1,900

Cost basis after special/bonus Depreciation = $3,800 - $1,900 = $1,900

Life of computer is 5 years or 20% per year

Regular Depreciation = $1,900 / 5 = $380

Total Depreciation = $1,900 + $380 = $2,280

Option 2 Opts out of Special depreciation

Cost of Computer = $3,800

Life of computer is 5 years or 20% per year

Regular Depreciation = $3,800 / 5 = $760

Total Depreciation = $760

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
In July of 2017, Elias bought a new computer system for his business for $3800. (1)...
In July of 2017, Elias bought a new computer system for his business for $3800. (1) What is the total depreciation if he claims special depreciation? (2) What is the total depreciation if he opts out of special depreciation?
Mike purchased depreciable assets for his new business on 1/10/2017 New computer equipment (5year property) 8,500...
Mike purchased depreciable assets for his new business on 1/10/2017 New computer equipment (5year property) 8,500 New office furniture and fixtures (7year property) 19,000 Delivery warehouse, including 10% land 85,000 He wants to elect section 179 on the computer. He does not elect out of bonus depreciation Using form 4562, calculate total depreciation?
Suppose a computer software developer for a certain company purchased a computer system for $55,000 on...
Suppose a computer software developer for a certain company purchased a computer system for $55,000 on April 27, 2017. The computer system is used for business 100% of the time. The accountant for the company elected to take a $30,000 Section 179 deduction, and the asset qualified for a special depreciation allowance. (a) What was the basis for depreciation (in $) of the computer system? (See Table 17-4.) $ (b) What was the amount (in $) of the first year's...
On April 6, 2017, John, a calander year taxpayer, purchased and placed in service a new...
On April 6, 2017, John, a calander year taxpayer, purchased and placed in service a new Hummer H2 (heavy SUV) for $83600 to be used 75 percent of the time in his business. What is the maximum amount that he can deduct in 2017 including Section 179 expensing, bonus depreciation, and MACRS depreciation.
1.Norwell Company purchased $1,413,200 of new business equipment on July 10, 2020. This was Norwell's only...
1.Norwell Company purchased $1,413,200 of new business equipment on July 10, 2020. This was Norwell's only asset purchase for its 2020 taxable year. Compute Norwell's total tax depreciation deduction for this 7-year recovery property (assuming Norwell has sufficnet income for the Section 179 deduction). ? 2.Belsap Inc., a calendar year taxpayer, purchased a total of $590,000 depreciable personalty during May 2020. Which of the following statements is true? Multiple Choice Belsap can elect to expense 100% of the cost. The...
On January 1, 2017, Flowers Unlimited purchased a new delivery van. The van cost $35,000 with...
On January 1, 2017, Flowers Unlimited purchased a new delivery van. The van cost $35,000 with an estimated life of 5 years and $5,000 residual value. Double diminishing-balance depreciation will be used. What is the balance in the Accumulated Depreciation account at the end of 2018? Question 34 options: $22,400 $19,200 $12,600 $10,800
On July 18 of year 1 Javier purchased a building, including the land it was on,...
On July 18 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,595,500; $463,000 was allocated to the basis of the land and the remaining $1,132,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) a. Using MACRS,...
22. Michael (single) purchased his home on July 1, 2007. On July 1, 2015 he moved...
22. Michael (single) purchased his home on July 1, 2007. On July 1, 2015 he moved out of the home. He rented out the home until July 1, 2016 when he moved back into the home. On July 1, 2017 he sold the home and realized a $305,000 gain. What amount of the gain is Michael allowed to exclude from his 2017 gross income? MULTIPLE CHOICE $0 $225,000 $250,000 $305,000 23. In year 1, Kris purchased a new home for...
1. Lacy is a single taxpayer. In 2017, her taxable income is $47,200. What is her...
1. Lacy is a single taxpayer. In 2017, her taxable income is $47,200. What is her tax liability in each of the following alternative situations? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a. All of her income is salary from her employer. Tax liability: ____?____ 2. In 2017, Carson is claimed as a dependent on his parent's tax return. His parents' ordinary income marginal tax rate is 28 percent....
1. Jose purchased a delivery van for his business through an online auction. His winning bid...
1. Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $25,250. In addition, Jose incurred the following expenses before using the van: shipping costs of $1,270; paint to match the other fleet vehicles at a cost of $1,440; registration costs of $2,970, which included $2,750 of sales tax and a registration fee of $220; wash and detailing for $121; and an engine tune-up for $327. What is Jose’s cost basis...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT