Question

Diana acquires, for $82,400, and places in service a 5-year class asset on December 19, 2018....

Diana acquires, for $82,400, and places in service a 5-year class asset on December 19, 2018. It is the only asset that Diana acquires during 2018. Diana does not elect immediate expensing under § 179. She elects additional first-year deprecation.

Diana's total cost recovery deduction for the asset is $______ for 2018.

Homework Answers

Answer #1

Additional first year depreciation is charged by taxpayers to get benefit of additional amount of cost recovery in the first year of service of qualified property. It is also known as bonus depreciation.

In this situation Diana acquires a asset for $82,400, and places it in service on December 19, 2018. Diana elects additional first-year deprecation.

Therefore, Diana's total cost recovery deduction for the asset is $43260 for 2018.

Calculation-

(50% x $82400) + [($82400/2) x 5%] = $43260

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Juan acquires a new 5-year class asset on March 14, 2018, for $200,000. This is the...
Juan acquires a new 5-year class asset on March 14, 2018, for $200,000. This is the only asset Juan acquired during the year. He does not elect immediate expensing under § 179. He does not claim any available additional first-year depreciation. On July 15, 2019, Juan sells the asset. Click here to access depreciation table to use for this problem. a. Juan's cost recovery for 2018 is $________. b. Juan's cost recovery for 2019 is $________.
Euclid acquires a 7-year class asset on May 9, 2018, for $162,400. Euclid does not elect...
Euclid acquires a 7-year class asset on May 9, 2018, for $162,400. Euclid does not elect immediate expensing under § 179. He does not claim any available additional first-year depreciation. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Euclid's cost recovery deduction is $____________ for 2018 and $_____________ for 2019.
Exercise 8-19 (Algorithmic) (LO. 2) Euclid acquires a 7-year class asset on May 9, 2020, for...
Exercise 8-19 (Algorithmic) (LO. 2) Euclid acquires a 7-year class asset on May 9, 2020, for $162,400 (the only asset acquired during the year). Euclid does not elect immediate expensing under § 179. He does not claim any available additional first-year depreciation. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Calculate Euclid's cost recovery deduction for 2020 and 2021. 2020: $fill in the blank 1 2021: $fill...
Juan, a sole proprietor, acquires a new 5-year class asset on March 14, 2017, for $200,000....
Juan, a sole proprietor, acquires a new 5-year class asset on March 14, 2017, for $200,000. This is the only asset Juan acquired during the year. He does not elect immediate expensing under § 179. Juan does not claim any available additional first-year depreciation. A. Determine Juan's cost recovery for 2017 $ B. On January 15, 2019, Juan sells the asset. Determine Juan's cost recovery for 2019 $ C. Suppose Juan sold the asset on December 15, 2019. His cost...
Exercise 8-20 (Algorithmic) (LO. 2) Hamlet acquires a 7-year class asset on November 23, 2020, for...
Exercise 8-20 (Algorithmic) (LO. 2) Hamlet acquires a 7-year class asset on November 23, 2020, for $491,400 (the only asset acquired during the year). Hamlet does not elect immediate expensing under § 179. He does not claim any available additional first year depreciation. This is Hamlet's only tangible personal property acquisition for the year. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Calculate Hamlet's cost recovery deduction...
Brett placed in service a new $1,400,000 seven-year class asset on August 2, 2017. On December...
Brett placed in service a new $1,400,000 seven-year class asset on August 2, 2017. On December 2, 2017, he placed in service $800,000 of used five-year class assets. Brett can't decide whether to use 179 on the 5-year property or the 7-year property. If Brett elects 179 and takes additional first-year depreciation on each eligible asset, what is the maximum cost recovery deduction under each of his two alternatives for these purchases in 2017?
Nick’s Lawn Service acquires and places in service a new lawnmower, a 7-year class asset, in...
Nick’s Lawn Service acquires and places in service a new lawnmower, a 7-year class asset, in September 2020 for $2,500. Nick disposes of the lawnmower in February 2022. What cost recovery deduction can Nick’s company take in 2022? Assume the company is a calendar year taxpayer and does not take Sec. 179 expense or bonus first-year depreciation.
On April 5, 2018, Mary purchased and placed in service, new seven-year class assets costing $540,000...
On April 5, 2018, Mary purchased and placed in service, new seven-year class assets costing $540,000 and five-year class assets costing $140,000. Both assets were placed in service on April 5, 2018. She elects to expense the maximum amount under § 179. She does take additional first-year depreciation. Assume taxable income is not a limitation. Determine Mary’s maximum cost recovery with respect to the assets for 2018.
(A) Blue Company acquires a new machine (seven-year property) on January 10, 2018, at a cost...
(A) Blue Company acquires a new machine (seven-year property) on January 10, 2018, at a cost of $620,000. Blue makes the election to expense the maximum amount under § 179, and wants to take any additional first-year depreciation allowed. No election is made to use the straight-line method. Determine the total deductions in calculating taxable income related to the machine for 2018 assuming Blue has taxable income of $800,000. (B) Susan purchased office furniture on September 20, 2017, for $100,000....
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.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT