Calculate the maximum depreciation expense, rounded to a whole number

18. Ryland Company, a calendar year taxpayer, purchased commercial realty for $2 million and allocated $200,000 cost to the land and $1.8 million cost to the building. Ryland placed the real estate in service on May 21. a. Compute Ryland's MACRS depreciation with respect to the realty for the year of purchase. b. How would your answer change if Ryland placed the realty in service on September 2 instead of May 21? c. How would your answer to part (a) change if the building was a residential apartment complex instead of a commercial office?

On January 1, Year 1, the Dole Company purchased an asset that cost $154,000. The asset had an expected useful life of seven years and no estimated residual value. The company initially decided to use sum-of-the-years'-digits (SYD) depreciation for both financial accounting and income tax purposes. Depreciation expense for the straight-line method and the sum-of-the-years'-digits method is as follows: Year Straight-line over 7 Years SYD over 7 Years Difference 1 $22,000 $38,500 $16,500 2 22,000 33,000 11,000 3 22,000 27,500 5,500 4 22,000 22,000 0 5 22,000 16,500 (5,500) 6 22,000 11,000 (11,000) 7 22,000 5,500 (16,500)   $154,000 $154,000 $0   At the beginning of Year 4, Dole changed from the sum-of-the-years'-digits method to the straight-line method of depreciation for financial reporting purposes. The company's income tax rate is 30%. In Year 3 and Year 4, Dole had $90,000 pretax income before depreciation and income taxes. Required:   a. Complete the…

An asset's book value is $18,700 on December 31, Year 5. The asset has been depreciated at an annual rate of $3,700 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $15,700, the company should record