s) Green Bank Corporation follows a calendar year tax period. During its 2020 tax year, the business purchased the following assets A desk and chair for each employee purchased on March 15, totaling $300,000 Desktop computers for each employee purchased on April 3, totaling $250,000 All of the above property is brand new and has been used entirely for business purposes since its purchase (ie. does not constitute listen property that has mixed personal and business use). Assume that the taxpayer desires the maximum total depreciation expense for the year possible. However, now assume that the plained po Sec 179 expense in 2020
s) Green Bank Corporation follows a calendar year tax period. During its 2020 tax year, the business purchased the following assets A desk and chair for each employee purchased on March 15, totaling $300,000 Desktop computers for each employee purchased on April 3, totaling $250,000 All of the above property is brand new and has been used entirely for business purposes since its purchase (ie. does not constitute listen property that has mixed personal and business use). Assume that the taxpayer desires the maximum total depreciation expense for the year possible. However, now assume that the plained po Sec 179 expense in 2020
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 43P: LO.2, 3, 9 On June 5, 2018, Javier Sanchez purchased and placed in service a new 7-year class asset...
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Transcribed Image Text:Question 16
s) Green Bank Corporation follows a calendar year tax period. During its 2020 tax year, the busmess purchased the following assets
A desk and chair for each employee purchased on March 15, totaling $300,000
Desktop computers for each employee purchased on April 3, totaling $250,000
All of the above property is brand new and has been used entirely for business purposes since its purchase (.e. does not constitute listed
property that has mixed personal and business use).
Assume that the taxpayer desires the maximum total depreciation expense for the year possible. However, now assume that the
taxpayer claimed no Sec. 179 expense in 2020.
How much bonus depreciation will the taxpayer claim in 2020? What is the remaining basis for each of the categories above left after
applying bonus depreciation?
OL $300,000 bonus depreciation. Remaining basis for desks and chairs 50 and remaining basis for computers $250,000.
OIL $275,000 bonus depreciation. Remaining basis for desks and chairs=$150,000 and remaining basis for computers $125,000.
O. None of the answers given here.
ONV. $550,000 bonus depreciation. Remaining basis for desks and chairs=$0 and remaining basis for computers - $0.
OV. SO bonus depreciation. Remaining basis for desks and chairs $300,000 and remaining basis for computers - $250,000.
O VI. $250,000 bonus depreciation. Remaining basis for desks and chairs= $300,000 and remaining basis for computers - 50
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