Question

George is a self-employed electrician. In April of the current year, George acquired a used van...

George is a self-employed electrician. In April of the current year, George acquired a used van (5-year property) for $15,000. He used the van 75% for business and 25% for personal purposes. George does not apply Sec. 179 or bonus depreciation. The maximum depreciation deduction for the van is

A) $1,200.

B) $2,250.

C) $3,000.

D) $1,920.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer is B. $ 2250

Explanation:

Cost of the assets (A) $ 15000
used for business purpose (%) (B) 75%
used for business purpose (A*B) 11250
Following MACRS rate of DDB is 20%
Depreciation deduction $ 11250* 20%

2250

Since section 179 is not used by the company than , next applicable method is use of MARCS, hence that is followed. Further, maximum deduction will be under 200 % DD so this method is applied.

Deduction is available only for assets used for business purpose. So it is allowable on 75% of the amount only.

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
1.Chunwei acquired and placed in service $1,250,000 of equipment on August 1, 2018 for use in...
1.Chunwei acquired and placed in service $1,250,000 of equipment on August 1, 2018 for use in her sole proprietorship. The equipment is 5-year recovery property. No other acquisitions are made during the year. Chunwei elects to expense the maximum amount under Sec. 179, and bonus depreciation is not applied. Chunwei's total deductions for 2018 (including Sec. 179 and depreciation) are A) $1,233,000. B) $233,000. C) $1,165,000. D) $1,033,000. 2. Ahmed purchases and places in service in 2018 personal property costing...
Reid acquired two assets in 2019: on August 6th he acquired computer equipment (five-year property) with...
Reid acquired two assets in 2019: on August 6th he acquired computer equipment (five-year property) with a basis of $1,020,000 and on November 9th he acquired machinery (seven-year property) with a basis of $1,020,000. Assume that Reid has sufficient income to avoid any limitations. Calculate the maximum depreciation deduction, including §179 expensing (but not bonus depreciation). (Use MACRS Table 1.) (Round final answer to the nearest whole number - no decimals).
In 2019, Carter Corporation acquires and places in service $3,000,000 of 7-year tangible personal property for...
In 2019, Carter Corporation acquires and places in service $3,000,000 of 7-year tangible personal property for use in its business. Carter’s business taxable income before any Sec. 179 deduction is $350,000. Carter elects the maximum Sec. 179 expensing for the property but elects out of bonus depreciation. What is the total cost recovery for the property in 2019? 1. $ 697,247 2. $ 728,685 3. $1,302,942 4. $ 917,247 5. None of the answers provided is correct.
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...
Boxer LLC has acquired various types of assets recently used 100% in its trade or business....
Boxer LLC has acquired various types of assets recently used 100% in its trade or business. Below is a list of assets acquired during 2016 and 2017: Asset Cost Basis Date Placed in Service Machinery 50,000 September 1, 2016 Apartment building 500,000 June 1, 2016 Furniture 510,000 May 1, 2017 Computer equipment 510,000 May 10, 2017 Automobile 15,000 March 16, 2017 Office building 600,000 June 24, 2017 Boxer did not elect §179 expense and elected out of bonus depreciation in...
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...
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...
On April 15, 2017, Andy purchased some furniture and fixtures (7-year property) for $11,000 to be...
On April 15, 2017, Andy purchased some furniture and fixtures (7-year property) for $11,000 to be used in his business. He did not elect to expense the equipment under §179 or bonus depreciation. On June 30, 2019, he sells the equipment. What is the cost recovery deduction for 2019?
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