What is the tax depreciation according to MACRS for year 1 and 2 for each item and in total (assuming they did not take 179 election) for each of the following Company Scenarios? Company A Item Cost Basis Year 1 Depreciation Year 2 Deprecation Aluminum Press (7 year)- (May) $55,000 Group of Computers for the front Office (3 yr.) - (November) $8,000 Forklift (5 yr.) (December) $450,000 Total Deprecation Each Year Company B Item Cost Basis Year 1 Depreciation Year 2 Deprecation Vehicles - (May) $120,000 Group of Computers for the front Office - (3 yr) (June) $18,000 Sewing Machine (December) $25,000 Total Deprecation Each Year
What is the tax depreciation according to MACRS for year 1 and 2 for each item and in total (assuming they did not take 179 election) for each of the following Company Scenarios? Company A Item Cost Basis Year 1 Depreciation Year 2 Deprecation Aluminum Press (7 year)- (May) $55,000 Group of Computers for the front Office (3 yr.) - (November) $8,000 Forklift (5 yr.) (December) $450,000 Total Deprecation Each Year Company B Item Cost Basis Year 1 Depreciation Year 2 Deprecation Vehicles - (May) $120,000 Group of Computers for the front Office - (3 yr) (June) $18,000 Sewing Machine (December) $25,000 Total Deprecation Each Year
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 1BD
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What is the tax depreciation according to MACRS for year 1 and 2 for each item and in total (assuming they did not take 179 election) for each of the following Company Scenarios?
Company A
Item
Cost Basis
Year 1 Depreciation
Year 2 Deprecation
Aluminum Press (7 year)- (May)
$55,000
Group of Computers for the front Office (3 yr.) - (November)
$8,000
Forklift (5 yr.) (December)
$450,000
Total Deprecation Each Year
Company B
Item
Cost Basis
Year 1 Depreciation
Year 2 Deprecation
Vehicles - (May)
$120,000
Group of Computers for the front Office - (3 yr) (June)
$18,000
Sewing Machine (December)
$25,000
Total Deprecation Each Year
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