Question

White Company acquires a new machine (seven-year property) on January 10, 2019, at a cost of...

White Company acquires a new machine (seven-year property) on January 10, 2019, at a cost of $620,000. White 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 2019 assuming White has taxable income of $800,000.

a. $88,598

b. $301,159

c. $568,574

d. $620,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The total deductions in calculating total income related to the machine for 2019 assuming White has taxable income of $800,000

is (d) $620,000

Explanation:In the given question we have to determine total deductions in calculating taxable income relating to the year 2019.

Cost of machine= $620,000

As per section 179 ( The Tax Cuts and Jobs Act, ) the deduction limit was increased to $1,000,000 for the year 2018 and beyond. The limit on equipment purchases has also increased to $2.5 million.

Thus the cost is fully deductible. Therefore full cost of machine i.e. $620,000 will be the total deduction.

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
(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....
2. Wally acquires and places in service a new machine (seven year property) on january 10,...
2. Wally acquires and places in service a new machine (seven year property) on january 10, 2018 at a cost of $1,080,000. Wally makes the election to expense the maximum amount under 179, but does not elect to maximize his first year MACRS depreciation deduction. Determine the total depreciation deduction Wally may claim on his 2018 federal income tax return, based on the elections he wants to make? Assume Wally has taxable income of 350,000 in 2018.
Tan Company acquired a new machine (five-year property) on January 15, 2018, at a cost of...
Tan Company acquired a new machine (five-year property) on January 15, 2018, at a cost of $40,000. Tan also acquired another new machine (five-year property) on November 5, 2018, at a cost of $200,000. Both assets were placed in service immediately, and Tan acquired no other assets during the year. No election was made to use the straight-line method. The company did not make the IRC § 179 election and elected not to take additional first-year depreciation. Determine the total...
Alabama Crane acquires and places in service a new crane (assume it is ten year property)...
Alabama Crane acquires and places in service a new crane (assume it is ten year property) on November 10, 2017, at a cost of $610,000. Alabama Crane wants to claim the maximum possible depreciation deduction in 2017. Determine the maximum total deductions available from the depreciaition of the machine for 2017 assuming Alabama Crane has taxable income of $800,000.
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.
Sam the Butcher acquires the following new five-year class property in 2020. Use $1,040,000 as the...
Sam the Butcher acquires the following new five-year class property in 2020. Use $1,040,000 as the maximum §179 amount: Asset Acquisition Date Cost A January 10 $1,106,000 B July 16 540,000 C November 20 170,000 Sam elects §179 for Asset A only. Sam’s taxable income from the butcher shop would not create a limitation for purposes of the § 179 deduction. Sam elects not to take the additional first-year depreciation. Determine Sam’s depreciation deduction for each asset for 2020. Determine...
a. Colonel Trautman runs a small demolition business with taxable income before any 179 expense of...
a. Colonel Trautman runs a small demolition business with taxable income before any 179 expense of $450,000. He acquired a machine for the business on Feb 2, 2019 for $85,000, and an office building on April 1, 2019 for 22,000. Both of the assets are new and were put in service immediately. Calculation the maximum deductions he is allowed take related to cost recovery for these assets for the year. b. On Nov 12, 2020, Colonel Trautman sells the office...
A. Colonel Trautman runs a small demolition business with taxable income before any §179 expense of...
A. Colonel Trautman runs a small demolition business with taxable income before any §179 expense of $450,000. He acquired a machine for the business on February 2, 2019 for $85,000, and an office building on April 1, 2019 for $522,000. Both of the assets are new and were put in service immediately. Calculate the maximum deductions he is allowed take related to cost recovery for these assets for the year. B. On November 12, 2020, Colonel Trautman sells the office...
Bonnie purchased a new business asset (five-year property) on March 10, 2018, at a cost of...
Bonnie purchased a new business asset (five-year property) on March 10, 2018, at a cost of $30,000. She also purchased a new business asset (seven-year property) on November 20, 2018, at a cost of $13,000. Bonnie did not elect to expense either of the assets under § 179, nor did she elect straight-line cost recovery. Bonnie takes additional first-year depreciation. Determine the cost recovery deduction for 2018 for these assets. a. $7,858 b. $9,586 c. $21,915 d. $43,000 e. None...
Clay LLC placed in service machinery and equipment (seven-year property) with a basis of $3,450,000 on...
Clay LLC placed in service machinery and equipment (seven-year property) with a basis of $3,450,000 on June 6, 2019. Assume that Clay has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179 expensing (ignoring any possible bonus depreciation). (Use MACRS Table 1.) (Round final answer to the nearest whole number.) Group of answer choices $1,020,000 $493,005 $455,857 $595,857 None of the choices are correct.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT