A taxpayer acquires office equipment for $10,000. Which one of the following choices is not an acceptable cost recovery period under either MACRS (regular or alternate) or ADS? O Straight-line for 7 years O Straight-line for 10 years O 150% declining balance for 7 years O 1506 declining balance for 10 vears

Q: Bramble Company owes $236,000 plus $21,500 of accrued interest to Sunland State Bank. The debt is a…

A: a. Prepare journal entries for Bramble Company and Sunland State Bank to record this debt…

Q: On April 5, 2019, Kinsey places in service a new automobile that cost $60,000.He does not elect §…

A: The depreciation allowed is lesser of MACRS depreciation and the recovery limitation.

Q: On May 11, 2018, your calendar year firm pays $6,000 for a computer server, its only asset purchase…

A: Correct Answer is option B $1200

Q: On 15 June 2020, Business Taxpayer sold furniture (seven-year property) it had placed in service on…

A: Year  Depreciation Rate        1 14.29%        2 24.49%        3 17.49%        4 12.49%…

Q: A taxpayer forgot to register his book of accounts on time. Which of the following penalties will be…

A: Step 1 Failure to maintain and filling of books of accounts and all the related documentation will…

Q: Tom's business has a preliminary Schedule C income of $400,000 so she would fike to see if she can…

A: The deduction reduces the tax amount.

Q: Stacey files as head of household with two dependents. She has AGI of $123,000 for 2020. She…

A: Itemized deductions: Deductions that individual can claim on federal income tax return and it…

Q: AC/DC-Corporation owns a building that it uses in its operations that has a basis of $70,000. During…

A: AC/DC-Corporation owns a Building Basis = $70,000 Fair market value before tornado = $200,000 Fair…

Q: Ivanhoe Company owes $179,000 plus $15,800 of accrued interest to Shamrock State Bank. The debt is a…

A: Debt settlement: A way to settle the debt or resolve the debt by allowing the debtor to pay a lump…

Q: McKenzie purchased qualifying equipment for his business that cost $212,000 in 2021. The taxable…

A: Deduction- A deduction is an outflow that can be deducted from a taxpayer's gross income in order to…

Q: Tommy's homeowners policy had an $50,000 deductible clause for thefts. How much is Tommy's theft…

A: The homeowner's policy is also known as the homeowners' insurance. The homeowner's insurance is…

Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P800,000 and with…

A: Book value of furniture and fixtures = Cost of furniture and fixtures -Accumulated depreciation…

Q: Ronnie's custom cars purchased fixed assets 2 years ago for $42,000. Ronnie has been offered $30,000…

A: The value at which a company disposed of its used assets is term as the salvage value.

Q: Mr. Han has an HO-3 contract with $100,000 dwelling coverage, $50,000 personal property coverage,…

A: Given:Mr. Han,Contract with dwelling coverage=$100000Personal property coverage=$50000 and $500…

Q: You purchase an asset that has a 10-year recovery period, per IRS tax code. This asset has a cost…

A: Given information, (1) Asset Recovery Period = 10 years (2) Asset Cost Basis = $ 9,200 (3) IRS Tax…

Q: Use the following information for the next four items: Light Company bought a machine for P300,000…

A: “Since you have asked multiple questions, we will solve one question for you. If you want any…

Q: Use the following information for questions 6 and 7: On December 31, 2018, Garnel Co. is in…

A: Net book value of the Equipment = Original cost - Accumulated depreciation Gain (loss) on the…

Q: Use the following information for questions 6 and On December 31, 2018, Garnel Co. is in financial…

A: Net book value of the Equipment = Original cost - Accumulated depreciation Gain (loss) on the…

Q: Four years ago, an investor purchased a five door-apartment for P5.5M. Income from rent exceeded…

A: Purchase price (P) = P 5.5 M Annual surplus (A) = P 0.48 M Tax rate = 8.25% Selling price after tax…

Q: You purchase an asset that has a 10-year recovery period, per IRS tax code. This asset has a cost…

A: Depreciation is described as an amount which is charged on the tangible fixed assets based on the…

Q: Strickland Company owes $200,000 plus $18,000 of accrued interest to Moran State Bank. The debt is a…

A: 1. Prepare journal entries for Strickland Company and Moran State Bank to record this debt…

Q: Troy Industries purchased a new machine 4 year(s) ago for $80,000. It is being depreciated under…

A: Initial cost = $80,000 Tax rate = 21%

Q: A nonresidential business building is placed in service by a calendar year tax payer on March 3 for…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: In 2020, Mr. Marangley, a dealer of car, disposed a brand new sports utility vehicle (SUV) which…

A: Normally for accounting we follow two methods viz Cash Basis and…

Q: A rental apartment complex (MACRS-GDS 27.5-year property) is placed in service by a calendar-year…

A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…

Q: 1. George, a cash basis taxpayer, sells equipment for $200,000. The equipment originally cost…

A: A) Particulars  Amount ($) Sales price of equipment   200000 Less: book value as on the date…

Q: This year, Barney and Betty sold their home (sales price $750,000; cost $200,000). All closing costs…

A: Capital gain on sales of home=Sale proceeds from the sale of the house-Cost of the home sold

Q: On August 4, 2021, calendar year taxpayer Ben Baker acquires and places in service in his sole…

A: Introduction: Depreciation is the process of reducing the complete cost of an expensive item…

Q: Diana purchases an office building for $1,000,000, office equipment for $500,000 and computer…

A: MACRS consists of 2 deprecation systems: The General depreciation system (GDS) The Alternative…

Q: In 2020, Mr. Marangley, a dealer of car, disposed a brand new sports utility vehicle (SUV) which…

A: Monthly installments to be paid for 7 month P50,000 * 7 P350,000 Immediate down payment  P100,000…

Q: n, the owner of the solar company, purchased a Mercedes car and will be used 100% for business…

A: The prime cost method is based on the assumption that the value of a depreciating item drops…

Q: depletion

A: As per the question, a self-employed taxpayer paid $700,000 for a gold mine that is projected to…

Q: A residential rental apartment complex is placed in service by a calendar-year taxpayer on February…

A: Part A) A residential rental property is included in the MACRS-GDS 27.5 years property class.

Q: In 2020, a business suffered the theft of a truck. Before the theft, the fair market value of the…

A: Casualty loss is the kind of loss which incurred suddenly, on an unexpected basis. Daily scrap…

Q: A file server and peripherals are purchased in December by a calendar-year taxpayer for $8,000. The…

A: Meaning of Straight line method of depreciation Straight line method of depreciation is a method…

Q: 7. In its 2019 Profit and Loss, how much expense should be reported for the compensated absences? *…

A: IAS 19 "Employees benefit" deals with the concept of all the benefits that provided to employees…

Q: On April 30, 2019, Leo purchased and placed in service a new car that cost $76,200. The business use…

A: Given information is: Cost of new car = $76200

Q: Sunland Company self-insures its property for fire and storm damage. If the company were to obtain…

A: Sawyer Company insures its assets against fire and storm damage. Sawyer Company's total expenditure…

Q: A taxpayer engaged in manufacturing operations bought a machine with a salvage value of P50,000 and…

A: Introduction:- The following formula used to calculate depreciation as follows:- Sum of each year of…

Q: As part of its employee benefits plan, Omega Corporation acquired apiece of residential lot worth…

A: The additional benefits which the employers offer for the performance of special tasks to their…

Q: ans co. is deciding to "purchase or lease" an automatic mixing equipment that will cost 35000, to be…

A: In this we have to calculate the after tax annual maintenance and insurance expenses.

Q: Bob, not a dealer, sold an apartment building for $600,000.  His adjusted basis in the building was…

A: Installment sales: It refers to the method under which the recognition of revenue will be done not…

Q: During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a…

A: Answer: The life of the new mixing tank is given = 9.5 years, which is more than 4 and less than 10…

Q: A taxpayer places a $50,000 5-year recovery period asset (not an auto) in service in 2021. This is…

A: half-year convention, bonus depreciation specifies that asset is acquired during middle of the year,…

Q: On January 1 of this year, Diaz Boutique pays $105,000 to modernize its store. Improvements include…

A: Organization has incurred $105000 to modernize its stock. It was treated as cost on improvements.…