1. During 2018, Axel Corporation purchases machinery (5-year property) for $120,000 and decides not to take a Section 179 deduction. a. Compute maximum tax depreciation for the machinery for 2018-2023. b. Compute maximum tax depreciation for 2018-2023 if Axel does not take Sec. 179 deduction and elects out of 100% bonus.
1. During 2018, Axel Corporation purchases machinery (5-year property) for $120,000 and decides not to take a Section 179 deduction. a. Compute maximum tax depreciation for the machinery for 2018-2023. b. Compute maximum tax depreciation for 2018-2023 if Axel does not take Sec. 179 deduction and elects out of 100% bonus.
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 26P
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1. During 2018, Axel Corporation purchases machinery (5-year property) for $120,000 and decides not to take a Section 179 deduction.
a. Compute maximum tax
b. Compute maximum tax depreciation for 2018-2023 if Axel does not take Sec. 179 deduction and elects out of 100% bonus.
2. During 2018, Diamonds Inc. purchases only one asset: equipment (7-year property) for $1,600,000. Diamonds had taxable income of $750,000 in 2018 and takes the maximum Section 179 deduction and elects out of 100% bonus. Compute maximum tax depreciation for 2018-2025.
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