[The following information applies to the questions displayed below.]On October 7 of year 1, Javier purchased a building, including the land it was on, to assemble his new equipment. Thetotal cost of the purchase was $1,304,500; $242,000 was allocated to the basis of the land and the remaining $1,062,500was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not roundintermediate calculations. Round your answers to the nearest whole dollar amount.)d. Assume the building is residential property. Using MACRS, what is Javier's depreciation deduction on the building for years 1through 3?DepreciationExpenseYear 1Year 238,633Year 338,633%24 TABLE 2a MACRS Mid-Quarter Convention: For property placed in serviceduring the first quarterTABLE 2b MACRS Mid-Quarter Convention: For property placed in service during thesecond quarterDepreciation Rate for Recovery Period5-Year7-YearYear 125.00%17.85%Year 230.0023.47Year 318.0016.76Year 4113711.97Year 511.378.87Year 64.268.87Year 78.87Year 83.34TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the thirdquarterDepreciation Rate for Recovery Period5-Year7-YearYear 115.00%10.71%Year 234.0025.51Year 320.4018.22Year 412.2413.02Year 511.309.30Year 67.068.85Year 78.86Year 85.53TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during thefourth quarterDepreciation Rate for Recovery Period5-Year7-YearYear 15.00%3.57%Year 238.0027.55Year 322.8019.68Year 413.6814.06Year 510.9410.04Year 69.588.73

The modified accelerated cost recovery system is that depreciation system according to which…

[The following information applies to the questions displayed below.] On October 7 of year 1, Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,304,500; $242,000 was allocated to the basis of the land and the remaining $1,062,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) 1. Assume the building is residential property. Using MACRS, what is Javier's depreciation deduction on the building for years 1 hrough 3? Depreciation Expense Year 1 Year 2 $ 38,633 Year 3 $ 38,633

[The following information applies to the questions displayed below.] On October 7 of year 1, Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,304,500; $242,000 was allocated to the basis of the land and the remaining $1,062,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) 1. Assume the building is residential property. Using MACRS, what is Javier's depreciation deduction on the building for years 1 hrough 3? Depreciation Expense Year 1 Year 2 $ 38,633 Year 3 $ 38,633

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 7BCRQ

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