Tax Drill - Standard Mileage Method In 2020, Britt drove her automobile 16,200 miles for business. She incurred $900 in gas expenses and $235 in tolls associated with the business mileage. Assuming Britt uses the standard mileage method, her deduction is $
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- John, the owner of the solar company, purchased a Mercedes car and will be used 100% for businesspurposes on 1 November 2021 at a cost of $118,000 (inc GST) estimated to have a useful life of ten years.Required: With reference to relevant legislation, discuss and calculate what amount is allowed as a deduction forthe decline in value of the machinery and the car discussed above, using both prime cost and diminishing valuemethodsColin purchased a machine on 1st August 2019 at a cost of $462,000 (including GST). Thismachinery is estimated to have a useful life of five years.Required: With reference to relevant legislation and case law, discuss and calculatewhat amount is allowed as a deduction for the decline in value of the machinery andthe Mercedes Benz car discussed above, using both prime cost and diminishing valuemethods PLEASE PUT 3 REFERENCESDavid is a self-employed investment adviser who uses his automobile for business. David drove his automobile a total of 28,000 miles during 2020; 75 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $8,400. a. How much is David’s transportation deduction based on the standard mileage method? b. How much is David’s transportation deduction based on the actual cost method? c. Which method should David use to calculate his transportation deduction, assuming he used the standard mileage method in the prior tax year? Why? d. Where should he deduct the transportation expense on his current year tax return?
- Clifford Delivery Company purchased a new delivery truck for $45,000 on April 1, 2019. The truck is expected to havea service life of 5 years or 120,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019and 14,000 miles in 2020. Clifford computes depreciation expense to the nearest whole month. 1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to thenearest dollar.)a. Straight-line method2019 $2020 $b. Sum-of-the-years'-digits method2019 $2020 $c. Double-declining-balance method2019 $2020 $d. Activity method2019 $2020 $Dane ASA bothpurchases and constructs various equipment it uses in its operations. The followingitems for two different types of equipment were recorded in random order during thecalendar year 2019. PurchaseCash paid for equipment, including sales tax of €5,000 €105,000Freight and insurance cost while in transit 2,000Cost of moving equipment into place at factory 3,100Wage cost for technicians to test equipment 6,000Insurance premium paid during first year of operation on this equipment 1,500Special plumbing fixtures required for new equipment 8,000Repair cost incurred in first year of operations related to this equipment 1,300ConstructionMaterial and purchased parts (gross cost €200,000; failed to take 1% cashdiscount)€200,000Imputed interest on funds used during construction (share financing) 14,000Labor costs 190,000Allocated overhead costs (fixed—€20,000; variable—€30,000) 50,000Profit on self-construction 30,000Cost of installing equipment 4,400InstructionsCompute the total cost…On March 15, 2022, Helen purchased and placed in service a new Escalade. The purchase price of the automobile was $62,000, and the vehicle had a rating of 6,500 GVW. The vehicle was used 100% for business.If required, round your answers to the nearest dollar.Click here to access the depreciation table to use for this problem.a. Assuming that Helen does not use additional first-year depreciation, calculate the total depreciation deduction that she can take on the vehicle for 2022.Section § 179 expenseMACRS cost recoveryTotal deduction<b. What is her total depreciation deduction if Helen decided to take additional first-year depreciation?
- Colin purchased a machine on 1st August 2019 at a cost of $462,000 (including GST). Thismachinery is estimated to have a useful life of five years.Required: With reference to relevant legislation and case law, discuss and calculatewhat amount is allowed as a deduction for the decline in value of the machinery andthe Mercedes Benz car discussed above, using both prime cost and diminishing valuemethodsOn July 1, 2018, Brent purchases a new automobile for $40,000. He uses the car 80% for business and drives the car for business purposes as follows: 8,000 miles in 2018, 19,000 miles in 2019, 20,000 miles in 2020, and 15,000 miles in 2021. Brent uses the actual cost method. [Assume that no § 179 expensing is claimed and that 200% declining-balance cost recovery with the half-year convention is used. The recovery limitation for an auto placed in service in 2018 is as follows: $10,000 (first year), $16,000 (second year), $9,600 (third year), and $5,760 (fourth year).] a. Compute his depreciation deductions for the years 2018, 2019, 2020, and 2021. What is Brent's adjusted basis in the auto on January 1, 2022?please solve correct and complete with working thanks On January 2, 2021, Archer Company, a skateboard manufacturer, installed a computerized machin$158,000. The machine's useful life was estimated at four years or a total of 187,500 units with a $Company's year-end is December 31.Calculate depreciation for each year of the machine's estimated useful life under each of the follaintermediate calculations.)a. Straight-lineb. Double-declining-balancec. Units-of-production, assuming actual units produced were:YearUnitsYear2021202220232024Total202138,700202241,750202353,000202460,000Straight-Line Double-Declining-BalanceUnits-of-Production
- Choose the letter of the correct answer Pedro Reyes purchased a delivery vehicle on January 1, 2016 amounting to PHP250,000. It is estimated that the vehicle will be useful for 10years. The vehicle can be sold for PHP10,000 at the end of its useful life. If the accounting period being reported by Pedro is one (1) year from January – December 2016, how much is the depreciation expense? a. Php240,000 b. Php24,000 c. Php20,000 d. Php2,000Jenkins, Inc. builds custom machines for manufacturers using robotic equipment. In 2022, the company decided to change from straight-line to double-declining balance depreciation for its robotic equipment. It changed the life expectancy as follows: Original cost of robotic equipment $2,500,000 Accumulated depreciation thru 2021 780,000 Original life in years 8 Remaining life in years 4 Determine the correct amount of depreciation to expense for 2022. Group of answer choices $390,000 $312,500 $430,000 $860,000. Paul is a self-employed investment adviser who uses his automobile for business. Paul drove his automobile a total of 20,000 miles during 2019; 75 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $6,200. a. How much is Paul's transportation deduction based on the standard mileage method? b. How much is Paul's transportation deduction based on the actual cost method? c. Which method should Paul use to calculate his transportation deduction, assuming he used the standard mileage method in the prior tax year? Why? d. Where should he deduct the transportation expense on his current year tax return?