Problem 10-60 (LO 10-2, LO 10-3) (Algo) Assume that ACW Corporation has 2021 taxable income of $1,680,000 for purposes of computing the $179 expense. The company acquired the following assets during 2021 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.) Machinery Asset Computer equipment Delivery truck Qualified improvement property Total Placed in Service 12-Sep Basis $ 488,000 10-Feb 21-Aug 02-Apr 88,000 111,000 1,398,000 $ 2,085,000 a. What is the maximum amount of $179 expense ACW may deduct for 2021? b. What is the maximum total depreciation that ACW may deduct in 2021 on the assets it placed in service in 2021? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. a. Maximum §$179 expense for 2021 $ 1,050,000 b. Maximum total deductible depreciation for 2021 $ 1,166,263 x

Problem 10-60 (LO 10-2, LO 10-3) (Algo) Assume that ACW Corporation has 2021 taxable income of $1,680,000 for purposes of computing the $179 expense. The company acquired the following assets during 2021 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.) Machinery Asset Computer equipment Delivery truck Qualified improvement property Total Placed in Service 12-Sep Basis $ 488,000 10-Feb 21-Aug 02-Apr 88,000 111,000 1,398,000 $ 2,085,000 a. What is the maximum amount of $179 expense ACW may deduct for 2021? b. What is the maximum total depreciation that ACW may deduct in 2021 on the assets it placed in service in 2021? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. a. Maximum §$179 expense for 2021 $ 1,050,000 b. Maximum total deductible depreciation for 2021 $ 1,166,263 x

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 33P

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(Appendix 11.1) Auburn Company purchased an asset on January 1, Year 1, for 150,000. The asset has a MACRS life of 7 years. The residual value of the asset is 35,000. Calculate the depreciation expense for Year 1 and Year 2 using MACRS.
(Appendix 11.1) Depreciation for Financial Statements and Income Tax Purposes Dinkle Company purchased equipment for 50,000. The equipment has an estimated residual value of 5,000 and an expected useful life of 10 years. Dinkle uses straight-line depreciation for its financial statements. Required: What is the difference between the companys income before taxes reported on its financial statements and the taxable income reported on its tax return in each of the first 2 years of the assets life if the asset was purchased on January 2, 2019, and its MACRS life is 5 years?
On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
1 Assume that ACW Corporation has 2021 taxable income of $1,940,000 for purposes of computing the §179 expense. The company acquired the following assets during 2021 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.) Asset Placed in Service Basis Machinery 12-Sep $ 514,000 Computer equipment 10-Feb 114,000 Delivery truck 21-Aug 137,000 Qualified improvement property 02-Apr 1,424,000 Total $ 2,189,000 What is the maximum amount of §179 expense ACW may deduct for 2021? What is the maximum total depreciation that ACW may deduct in 2021 on the assets it placed in service in 2021? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Assume that Sivart Corporation has 2023 taxable income of $1,750,000 for purposes of computing the §179 expense and acquired several assets during the year. Assume the delivery truck does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Asset Placed in Service Basis Machinery June 12 $ 1,440,000 Computer equipment February 10 70,000 Delivery Truck—used August 21 93,000 Furniture April 2 310,000 Total $ 1,913,000 b. What is the maximum total depreciation (§179, bonus, MACRS) that Sivart may deduct in 2023 on the assets it placed in service in 2023?
Assume that Sivart Corporation has 2022 taxable income of $1,750,000 for purposes of computing the §179 expense and acquired several assets during the year. Assume the delivery truck does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Placed in Service Basis Machinery June 12 $ 1,440,000 Computer equipment February 10 70,000 Delivery Truck—used August 21 93,000 Furniture April 2 310,000 Total $ 1,913,000 a. What is the maximum amount of §179 expense Sivart may deduct for 2022?
Assume that TDW Corporation (calendar-year-end) has 2020 taxable income of $692,000 for purposes of computing the §179 expense. The company acquired the following assets during 2020: (Use MACRS 2020 Table 1, Table 2, Table 3, Table 4 and Table 5.) Placed in Asset Service Basis Machinery September 12 $ 2,275,250 Computer equipment February 10 269,825 Furniture April 2 888,925 Total $ 3,434,000 What is the maximum amount of §179 expense TDW may deduct for 2020?
Assume that TDW Corporation (calendar year-end) has 2021 taxable income of $696,000 for purposes of computing the §179 expense. The company acquired the following assets during 2021: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Placed in Service Basis Machinery September 12 $ 2,275,750 Computer equipment February 10 270,475 Furniture April 2 889,775 Total $ 3,436,000 What is the maximum total depreciation, including §179 expense, that TDW may deduct in 2021 on the assets it placed in service in 2021, assuming no bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
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Company C. purchased equipment for 100,000 on 1/1/2020. The depreciation expense on the equipment was 10,000 for 2020 and 10,000 for 2021. The residual value of the equipment is 10,000. At 12/31/2021 what is the book value of the equipment? A. 100,000 B. 90,000 C. 80,000 D. 70,000 E. None of the above
3. On December 1, 2021, Violet Company committed to a plan to dispose of the assets of a business component. The disposal meets the requirements to be classified as discontinued operation. On that date, the entity estimated that the loss from the disposition of the assets would be P700,000 and the component’s operating income was P200,000. What amount of pretax loss should be reported for discontinued operation for 2021? A. 900,000 B. 700,000 C. 200,000 D. 500,000 E. None of them
AMP Corporation (calendar year-end) has 2021 taxable income of $1,900,000 for purposes of computing the §179 expense. During 2021, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Placed in Service Basis Machinery September 12 $ 1,530,000 Computer equipment February 10 485,000 Office building April 2 600,000 Total $ 2,615,000 b. What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2021 on the assets it placed in service in 2021, assuming no bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)