Question

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.

Homework Answers

Answer #1

Solution :

Calculation of Euclid's cost of recovery deduction for 2018 and 2019 -

cost of recovery deduction for 2018 = Asset value * Depreciation rate for the 1st year

= $1,62,400 * 14.29%(by using MACR table)

= $23,206.96

Therefore , the cost of recovery of deduction for 2018 is $23,207(Approx) .

cost of recovery deduction for 2019 = Asset value * Depreciation rate for the 2nd year

= $1,62,400 * 24.49%(by using MACR table)

= $39,771.76

Therefore , the cost of recovery of deduction for 2019 is $39,772 (Approx) .

Euclid's cost recovery deduction is $ 23,207 for 2018 and $ 39,772 for 2019.

  

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
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 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 $________.
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...
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.
On June 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset...
On June 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $560,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2019, his business generated a net income of $945,780 before any $179 immediate expense election. Rather than using bonus depreciation, Javier would like to use $179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost. If...
Problem 8-33 (LO. 2) Orange Corporation acquired new office furniture on August 15, 2018, for $130,000....
Problem 8-33 (LO. 2) Orange Corporation acquired new office furniture on August 15, 2018, for $130,000. Orange does not elect immediate expensing under § 179. Orange claims any available additional first-year depreciation. If required, round your answer to the nearest dollar. Click here to access Exhibit 8.1 and the depreciation tables in the textbook. a. Determine Orange's cost recovery for 2018. The office furniture is classified as Seven-year class of property for MACRS. If bonus depreciation is elected, Orange's deduction...
Debra acquired the following new assets during 2018: Date Asset Cost April 11 Furniture $40,000 July...
Debra acquired the following new assets during 2018: Date Asset Cost April 11 Furniture $40,000 July 28 Trucks 40,000 November 3 Computers 70,000 Debra does not elect immediate expensing under § 179. She does not claim any available additional first-year depreciation. If required, round your answers to the nearest dollar. a. What MACRS convention applies to the assets? Mid-quarte b. What class of property is each asset for MACRS? Furniture: Seven-year Trucks: Five-year Computers: Five-year c. The cost recovery deductions...
On April 5, 2019, Kinsey places in service a new automobile that cost $76,250. He does...
On April 5, 2019, Kinsey places in service a new automobile that cost $76,250. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 95% for business and 5% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this problem. Assume the following luxury...
Debra acquired the following new assets during 2019. Date Asset Cost April 11 July 28 November...
Debra acquired the following new assets during 2019. Date Asset Cost April 11 July 28 November 3 Furniture Trucks Computers $40,000 40,000 70,000 Determine Debra’s cost recovery deductions for the current year. Debra does not elect immediate expensing under § 179. She does not claim any available additional first-year depreciation.
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.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT