Woolard Supplies (a sole proprietorship) has taxable income in 2021 of $300,000 before any depreciation deductions (Section 179, bonus, or MACRS) and placed some office furniture inte service during the year. The furniture does not qualify for bonus depreciation. Asset Placed in Service Basis Office furniture (used) June 5 $1,300,000 If Woolard elects the maximum amount of Section 179 for the year: a. What is the amount of MACRS depreciation expense for the year? b. What is the amount of deductible Section 179 expense for the year?
Woolard Supplies (a sole proprietorship) has taxable income in 2021 of $300,000 before any depreciation deductions (Section 179, bonus, or MACRS) and placed some office furniture inte service during the year. The furniture does not qualify for bonus depreciation. Asset Placed in Service Basis Office furniture (used) June 5 $1,300,000 If Woolard elects the maximum amount of Section 179 for the year: a. What is the amount of MACRS depreciation expense for the year? b. What is the amount of deductible Section 179 expense for the year?
Chapter8: Depreciation And Sale Of Business Property
Section: Chapter Questions
Problem 4MCQ: James purchased office equipment for his business. The equipment has a depreciable basis of $7,000...
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Transcribed Image Text:Woolard Supplies (a sole proprietorship) has taxable income in 2021 of $300,000 before any
depreciation deductions (Section 179, bonus, or MACRS) and placed some office furniture into
service during the year. The furniture does not qualify for bonus depreciation.
Asset
Placed in Service
Basis
Office furniture (used)
June 5
$1,300,000
If Woolard elects the maximum amount of Section 179 for the year:
a. What is the amount of MACRS depreciation expense for the year?
b. What is the amount of deductible Section 179 expense for the year?
c. What is Woolard's Section 179 carryforward amount to next year, if any?
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