3. Orange Corporation acquired new office furniture on August 15, 2021, for $2,700,000. Orange elects immediate expensing under $ 179. Orange does not claim any available additional first- year depreciation. Orange's taxable income is 1,000,000. Determine Orange's cost recovery for 2021. 4. On May 5, 2021, Christy purchased and placed in service a hotel. The hotel cost $10.8 million. Calculate Christy's cost recovery deductions for 2021 and for 2024. 5. On October 15, 2021, Jon purchased and placed in service a used car. The purchase price was $50,000. This was the only business use asset Jon acquired in 2021. He used the car 80% of the time for business and 20% for personal use. Jon used the MACRS statutory percentage method. Calculate the total deduction Jon may take for 2021with respect to the car. (ignore 179 and bonus)
3. Orange Corporation acquired new office furniture on August 15, 2021, for $2,700,000. Orange elects immediate expensing under $ 179. Orange does not claim any available additional first- year depreciation. Orange's taxable income is 1,000,000. Determine Orange's cost recovery for 2021. 4. On May 5, 2021, Christy purchased and placed in service a hotel. The hotel cost $10.8 million. Calculate Christy's cost recovery deductions for 2021 and for 2024. 5. On October 15, 2021, Jon purchased and placed in service a used car. The purchase price was $50,000. This was the only business use asset Jon acquired in 2021. He used the car 80% of the time for business and 20% for personal use. Jon used the MACRS statutory percentage method. Calculate the total deduction Jon may take for 2021with respect to the car. (ignore 179 and bonus)
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 33P
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Transcribed Image Text:3. Orange Corporation acquired new office furniture on August 15, 2021, for $2,700,000. Orange
elects immediate expensing under $ 179. Orange does not claim any available additional first-
year depreciation. Orange's taxable income is 1,000,000. Determine Orange's cost recovery for
2021.
4. On May 5, 2021, Christy purchased and placed in service a hotel. The hotel cost $10.8 million.
Calculate Christy's cost recovery deductions for 2021 and for 2024.
|
5. On October 15, 2021, Jon purchased and placed in service a used car. The purchase price was
$50,000. This was the only business use asset Jon acquired in 2021. He used the car 80% of the
time for business and 20% for personal use. Jon used the MACRS statutory percentage method.
Calculate the total deduction Jon may take for 2021with respect to the car. (ignore 179 and
bonus)
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On May 5, 2021, Christy purchased and placed in service a hotel. The hotel cost $10.8 million. Calculate Christy's cost recovery deductions for 2021 and for 2024.
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