Loose Leaf for McGraw-Hill's Taxation of Individuals and Business Entities 2019 Edition
10th Edition
ISBN: 9781260189728
Author: Brian C. Spilker Professor, Benjamin C. Ayers, John Robinson Professor, Edmund Outslay Professor, Ronald G. Worsham Associate Professor, John A. Barrick Assistant Professor, Connie Weaver
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 10, Problem 46P
At the beginning of the year, Poplock began a calendar-year dog boarding business called Griff’s Palace. Poplock bought and placed in service the following assets during the year:
Assuming Poplock does not elect §179 expensing and elects not to use bonus
- a) What is Poplock’s year 1 depreciation deduction for each asset?
- b) What is Poplock’s year 2 depreciation deduction for each asset?
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At the beginning of the current year, Poplock began a calendar-year dog boarding business called Griff's Palace. Poplock
bought and placed in service the following assets during the year:
Asset
Computer equipment
Dog-grooming furniture
Pickup truck
Commercial building
Land (one acre)
Asset
Computer equipment
Dog-grooming furniture
Pickup truck
Date Acquired Cost Basis
3/23
5/12
9/17
10/11
10/11
Assuming Poplock does not elect 5179 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.)
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no
answer blank. Enter zero if applicable.
Commercial building
Land (one acre)
Total
What is Poplock's year 1 depreciation deduction for each asset?
$
$9,000
11,000
10,000
310,000
120,000
Depreciation
Deduction
At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the year: Computers
Office desks Machinery Office building Asset Asset Assuming Anna 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.) Note: Do not round intermediate
calculations. Round your final answers to the nearest whole dollar amount. a. What is Anna's year 1 cost recovery for each asset? Year 1
Cost Recovery Computers Office desks Date Acquired 1/30 2/15 7/25 8/13 $ $ $ $ $ 56,000 X 4,573 10,718 Machinery Office building
Total 75,131 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Cost
Basis $28,000 $ 32,000 $75,000 $ 400,000 3,840 x
At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the
year:
Computers
Office desks…
At the beginning of the current year, Poplock began a calendar-year dog boarding business called Griff's Palace. Poplock
bought and placed in service the following assets during the year:
Asset
Computer equipment
Dog-grooming furniture
Pickup truck
Commercial building
Land (one acre)
Problem 10-46 Part a (Algo)
Assuming Poplock 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.)
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no
answer blank. Enter zero if applicable.
a. What is Poplock's year 1 depreciation deduction for each asset?
Answer is complete but not entirely correct.
Depreciation
Deduction
Asset
Computer equipment
Dog-grooming fumiture
Pickup truck
Commercial building
Land (one acre)
Total
Date Acquired Cost Basis
3/23
$9,800
5/12
11,800
9/17
10/11
10/11
$
$
$
$
$
$
10,000
318,000
128,000
3,136
2,247…
Chapter 10 Solutions
Loose Leaf for McGraw-Hill's Taxation of Individuals and Business Entities 2019 Edition
Ch. 10 - Explain why certain long-lived assets are...Ch. 10 - Prob. 2DQCh. 10 - Explain the similarities and dissimilarities...Ch. 10 - Is an assets initial or cost basis simply its...Ch. 10 - Prob. 5DQCh. 10 - Explain why the expenses incurred to get an asset...Ch. 10 - Graber Corporation runs a long-haul trucking...Ch. 10 - What depreciation methods are available for...Ch. 10 - If a business places several different assets in...Ch. 10 - Prob. 38P
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