! Required information Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore $179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.) Asset Machinery Computer equipment Delivery truck* Furniture Date Placed in Service October 25 February 3 March 17 April 22 Original Basis $ 116,000 56,000 69,000 196,000 Total $ 437,000 The delivery truck is not a luxury automobile. In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $760,000 b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take §179 expense)? Note: Round your intermediate calculations to the nearest whole dollar amount. Answer is complete but not entirely correct. MACRS depreciation $ 69,585
! Required information Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore $179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.) Asset Machinery Computer equipment Delivery truck* Furniture Date Placed in Service October 25 February 3 March 17 April 22 Original Basis $ 116,000 56,000 69,000 196,000 Total $ 437,000 The delivery truck is not a luxury automobile. In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $760,000 b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take §179 expense)? Note: Round your intermediate calculations to the nearest whole dollar amount. Answer is complete but not entirely correct. MACRS depreciation $ 69,585
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 21P
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Question
Transcribed Image Text:!
Required information
Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore $179 expense
and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.)
Asset
Machinery
Computer equipment
Delivery truck*
Furniture
Date Placed in
Service
October 25
February 3
March 17
April 22
Original
Basis
$ 116,000
56,000
69,000
196,000
Total
$ 437,000
The delivery truck is not a luxury automobile.
In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of
$760,000
b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus
depreciation (but does not take §179 expense)?
Note: Round your intermediate calculations to the nearest whole dollar amount.
Answer is complete but not entirely correct.
MACRS depreciation
$ 69,585
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