Question

On Aug ust 20, 2017, May placed in service a building for her business. On November...

On Aug ust 20, 2017, May placed in service a building for her business. On November 28, 2017, May paid $80,000 for improvements to the building. What is May’s cost recovery deduction for the building improvements in 2017?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
If additional first year depreciation is taken than answer is
$80000*50% $40,000
As the improvement is done in November and it is a nonresidential
real property-39 years henec depreciation rate is .321%
$40000*.321% 128.4
Total deduction $40,128.4
rounded to nearest $ $40,128
If additional depreciation is not taken than the total deduction is
80000*.321% 257 or $256.8
But I think additional depreciation must be taken.
If any doubt please comment
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
On April 3, 2017, Terry purchased and placed in service a building that cost $2,000,000. An...
On April 3, 2017, Terry purchased and placed in service a building that cost $2,000,000. An appraisal determined that 25% of the total cost was attributed to the value of the land. The bottom floor of the building is leased to a retail business for $32,000. The other floors of the building are rental apartments with an annual rent of $160,000. If required, round your answers to the nearest dollar. a. How is the property classified for MACRS? -non-residential real...
2. On May 28, 2018, Marty purchased and placed into service a new $20,000 car. The...
2. On May 28, 2018, Marty purchased and placed into service a new $20,000 car. The car was used 40% for business, 30% for production of income and 30% for personal use. Compute Marty’s cost recovery deduction for 2018.
1. Hermione purchased and placed in service machine costing $2,500,000 in November of 2020. This is...
1. Hermione purchased and placed in service machine costing $2,500,000 in November of 2020. This is the only asset she placed in service during the year. Her net income for the year is $2,000,000. (7 POINTS) a. What is her depreciation deduction for 2020 if she elects Section 179? b. What is her depreciation deduction for 2020 if makes no elections and uses MACRS? c. What is her depreciation deduction for 2020 if she elects Additional First Year (Bonus) depreciation?...
1. Hermione purchased and placed in service machine costing $2,500,000 in November of 2020. This is...
1. Hermione purchased and placed in service machine costing $2,500,000 in November of 2020. This is the only asset she placed in service during the year. Her net income for the year is $2,000,000. What is her depreciation deduction for 2020 if makes no elections and uses MACRS? What is her depreciation deduction for 2020 if she elects Additional First Year (Bonus) depreciation? Which method would you recommend for her?
1. Hermione purchased and placed in service machine costing $2,500,000 in November of 2020. This is...
1. Hermione purchased and placed in service machine costing $2,500,000 in November of 2020. This is the only asset she placed in service during the year. Her net income for the year is $2,000,000.(7 Points) a. What is her depreciation deduction for 2020 if she elects Section 179? b. What is her depreciation deduction for 2020 if makes no elections and uses MACRS? c. What is her depreciation deduction for 2020 if she elects Additional First Year (Bonus) depreciation? d....
On April 3, 2018, Terry purchased and placed in service a building that cost $2,000,000. An...
On April 3, 2018, Terry purchased and placed in service a building that cost $2,000,000. An appraisal determined that 25% of the total cost was attributed to the value of the land. The bottom floor of the building is leased to a retail business for $32,000. The other floors of the building are rental apartments with an annual rent of $160,000. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for...
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?
Problem 8-46 (Algorithmic) (LO. 4) On March 1, 2017, Leo purchased and placed in service a...
Problem 8-46 (Algorithmic) (LO. 4) On March 1, 2017, Leo purchased and placed in service a new car that cost $25,700. The business use percentage for the car is always 100%. He does take the additional first-year depreciation. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles. a. What MACRS convention applies to the new car? b. Is the automobile considered...
On October 15, 2018, Jon purchased and placed in service a used car. The purchase price...
On October 15, 2018, Jon purchased and placed in service a used car. The purchase price was $25,000. This was the only business use asset Jon acquired in 2018. He used the car 80% of the time for business and 20% for personal use. Jon used the regular MACRS method. Calculate the total cost recovery deduction Jon may take for 2018 with respect to the car.
Medium Corporation purchases furniture and fixtures for use in business and places in service on November...
Medium Corporation purchases furniture and fixtures for use in business and places in service on November 1, 2018. The furniture and fixtures cost $80,000 and represented Medium's only acquisition of depreciable property during the year. Medium does not elect to expense any part of the cost of the property under Sec.179. a) What is Medium's depreciation deductions in 2018? Round the answers to the nearest dollar. b) If Medium Corporation sells the furniture on August 1, 2020, what is the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT