V8 b. Assuming Burbank would like to maximize its cost recovery deductionsby claiming bonus and §179 expense, which assets should Burbankimmediately expense?Note: You may select more than one answer. Single click the box withthe question mark to produce a check mark for a correct answer anddouble click the box with the question mark to empty the box for awrong answer. Any boxes left with a question mark will be automaticallygraded as incorrect.? Used Copier? New Computer Equipment? Furniture? New Delivery Truck?Luxury Autoc. What is Burbank's maximum cost recovery deduction this year assuming it elects §179 expense and claims bonus depreciation?Maximum cost recovery deduction Required information[The following information applies to the questions displayed below.]Burbank Corporation (calendar year-end) acquired the following property this year: (Use MACRS Table 1, Table 2 andExhibit 10-10.)AssetUsed copierNew computer equipmentFurnitureNew delivery truckLuxury autoTotalPlaced in ServiceNovember 12June 6July 15Maximum cost recovery deductionOctober 28January 31Basis$ 10,00016,20034,20021,20072,200$ 153,800Burbank acquired the copier in a tax-deferred transaction when the shareholder contributed the copier to the business inexchange for stock.Note: Round your answer to the nearest whole dollar amount.a. Assuming no bonus or §179 expense, what is Burbank's maximum cost recovery deduction for this year?

Name: V8 b. Assuming Burbank would like to maximize its cost recovery deduct
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: V8 b. Assuming Burbank would like to maximize its cost recovery deductionsby claiming bonus and §179 expense, which assets should Burbankimmediately expense?Note: You may select more than one answer. Single click the box withthe question mark to prod

a. Assets purchased in last round = (72,200 + 21,200/153,800) × 100…

Business

Accounting

[The following information applies to the questions displayed below.] Burbank Corporation (calendar year-end) acquired the following property this year: (Use MACRS Table 1, Table 2 and Exhibit 10-10.) Asset Used copier New computer equipment Furniture New delivery truck Luxury auto Total Placed in Service November 12 June 6 July 15 October 28 January 31 Basis $ 10,000 16,200 34,200 21,200 72,200 $ 153,800 Burbank acquired the copier in a tax-deferred transaction when the shareholder contributed the copier to the business in exchange for stock. Note: Round your answer to the nearest whole dollar amount.

[The following information applies to the questions displayed below.] Burbank Corporation (calendar year-end) acquired the following property this year: (Use MACRS Table 1, Table 2 and Exhibit 10-10.) Asset Used copier New computer equipment Furniture New delivery truck Luxury auto Total Placed in Service November 12 June 6 July 15 October 28 January 31 Basis $ 10,000 16,200 34,200 21,200 72,200 $ 153,800 Burbank acquired the copier in a tax-deferred transaction when the shareholder contributed the copier to the business in exchange for stock. Note: Round your answer to the nearest whole dollar amount.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 76P

See similar textbooks

Similar questions

When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapmans depreciation expense for 2019 was $11,000. What was the original cost of the building? a. $98,000 b. $110,000 c. $122,000 d. $134,000
Inclusion in Property, Plant, and Equipment Guthrie Inc. must determine whether the following items are included in property, plant, and equipment: a. idle equipment awaiting sale b. machinery kept on hand and used only when other machinery breaks c. land held for investment d. the right to publish a literary work e. progress payments on a building being constructed by a contractor f. fully depredated assets still being used g. expenditures to improve leased property h. equipment leased to others i. purchase of an asset with an expected life of 9 months j. obligation to remove leasehold improvement at the termination of a lease Required: 1. Indicate which items are included in the cost of property, plant, and equipment and which items are excluded from the cost of property, plant, and equipment. 2. Next Level For each item excluded from property, plant, and equipment, explain why it was excluded.
Jerry uses a building for business purposes. The building was purchased on April 1, year 3, for 124,000. It was sold on October 3, year 6, for 200,000. Accumulated depreciation as of the date of sale was 14,000, 4,000 of which was in excess of straight line. How much of the gain in year 6 is unrecaptured Section 1250 gain? a. 4,000 b. 10,000 c. 14,000 d. 100,000
[The following information applies to the questions displayed below.] Dog Co. acquired and placed in service the following assets during the year: Date Cost Asset Placed in Service Basis Computer equipment 3/9 $ 15,800 Furniture 5/23 23,200 Commercial building 10/19 347,000 Assuming Dog Co. does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) b. What is Dog Co.'s year 3 cost recovery for each asset if Dog Co. sells all of these assets on 4/16 of year 3?
DLW Corporation acquired and placed in service the following assets during the year: Asset Date Acquired Cost Basis Computer equipment 3/11 $ 18,000 Furniture 3/7 $ 23,500 Commercial building 9/15 $ 317,000 Assuming DLW does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Problem 10-47 Part a (Algo) a. What is DLW's year 1 cost recovery for each asset?
[The following information applies to the questions displayed below.] Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.) Date Placed Original Asset in Service Basis Machinery October 25 $ 72,000 Computer equipment February 3 11,500 Used delivery truck* August 17 24,500 Furniture April 22 152,500 *The delivery truck is not a luxury automobile. b. What is the allowable MACRS depreciation on Evergreen’s property in the current year if Evergreen does not elect out of bonus depreciation? Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7.41 11.52 12.49 11.52 7.70 6.177…
DLW Corporation acquired and placed in service the following assets during the year: Asset Date Acquired Cost Basis Computer equipment 3/11 $ 18,000 Furniture 3/7 $ 23,500 Commercial building 9/15 $ 317,000 Assuming DLW does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) b. What is DLW's year 3 cost recovery for each asset if DLW sells these assets on 2/24 of year 3?
[The following information applies to the questions displayed below.] Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.) Date Placed Original Asset in Service Basis Machinery October 25 $ 72,000 Computer equipment February 3 11,500 Used delivery truck* August 17 24,500 Furniture April 22 152,500 *The delivery truck is not a luxury automobile. a. What is the allowable MACRS depreciation on Evergreen’s property in the current year, assuming Evergreen does not elect §179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.) Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% Year 2 44.45 32.00 24.49…