! 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 Total Date Placed in Original Service October 25 Basis 24,000 37,000 164,000 $ 84,000 February 3 March 17 April 22 $ 309,000 *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 $440,000. 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. MACRS depreciation
! 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 Total Date Placed in Original Service October 25 Basis 24,000 37,000 164,000 $ 84,000 February 3 March 17 April 22 $ 309,000 *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 $440,000. 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. MACRS depreciation
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 21P
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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
Total
Date Placed in Original
Service
October 25
Basis
24,000
37,000
164,000
$ 84,000
February 3
March 17
April 22
$ 309,000
*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
$440,000.
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.
MACRS depreciation
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