CengageNOWv2, 1 term Printed Access Card for Hoffman/Young/Raabe/Maloney/Nellen's South-Western Federal Taxation 2018: Individual Income Taxes, 41st
41st Edition
ISBN: 9781337389518
Author: William H. Hoffman, James C. Young, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Chapter 8, Problem 27CE
To determine
Calculate total
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On April 5, 2023, Kinsey places in service a new automobile that cost $70,000. He does not elect § 179 expensing, and he elects not to
take any available additional first-year depreciation. The car is used 75% for business and 25% for personal use in each tax year. Kinsey
uses the regular MACRS method of cost recovery (the auto is a 5-year asset).
Click here to access the depreciation table to use for this problem.
Compute the total depreciation allowed for:
2023:
2024:
x
x
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On April 5, 2019, Kinsey places in service a new automobile that cost $60,000.He does not elect § 179 expensing, and he elects not to take any availableadditional first-year depreciation. The car is used 70% for business and 30% forpersonal use in each tax year.Kinsey chooses the MACRS 200% declining-balance method of cost recovery (theauto is a 5-year asset). Assume the following luxury automobile limitations: year 1:$10,000; year 2: $16,000. Compute the total depreciation allowed for 2019 and 2020.
On April 5, 2023, Kinsey places in service a new automobile that cost $58,250. He does not elect § 179 expensing, and he elects not to
take any available additional first-year depreciation. The car is used 95% for business and 5% for personal use in each tax year. Kinsey
uses the regular MACRS method of cost recovery (the auto is a 5-year asset).
Click here to access the depreciation table to use for this problem.
If required, round your final answers to the nearest dollar.
Compute the total depreciation allowed for:
2023:
2024:
Chapter 8 Solutions
CengageNOWv2, 1 term Printed Access Card for Hoffman/Young/Raabe/Maloney/Nellen's South-Western Federal Taxation 2018: Individual Income Taxes, 41st
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - LO.2 Robert purchased and placed in service...Ch. 8 - LO.2 Jim owns a very large ranch. A large part of...Ch. 8 - Prob. 10DQ
Ch. 8 - Prob. 12DQCh. 8 - Discuss the definition of business income as it is...Ch. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Prob. 19DQCh. 8 - Prob. 20DQCh. 8 - Prob. 21CECh. 8 - Prob. 22CECh. 8 - Prob. 23CECh. 8 - Prob. 24CECh. 8 - Prob. 25CECh. 8 - Prob. 26CECh. 8 - Prob. 27CECh. 8 - Prob. 28CECh. 8 - Prob. 29CECh. 8 - Prob. 30CECh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - Prob. 33PCh. 8 - Prob. 34PCh. 8 - Prob. 35PCh. 8 - Prob. 36PCh. 8 - Prob. 37PCh. 8 - Prob. 38PCh. 8 - Prob. 39PCh. 8 - Prob. 40PCh. 8 - Prob. 41PCh. 8 - Prob. 42PCh. 8 - Prob. 43PCh. 8 - Prob. 44PCh. 8 - Prob. 45PCh. 8 - Prob. 46PCh. 8 - Prob. 47PCh. 8 - Prob. 48PCh. 8 - Prob. 49PCh. 8 - Prob. 50PCh. 8 - Prob. 51PCh. 8 - LO.2, 5, 9 Jamie purchased 100,000 of new office...Ch. 8 - Prob. 53PCh. 8 - Prob. 54PCh. 8 - Prob. 55PCh. 8 - Prob. 56PCh. 8 - Prob. 57CPCh. 8 - Prob. 58CPCh. 8 - Prob. 1RPCh. 8 - Prob. 2RPCh. 8 - Prob. 3RPCh. 8 - Michael Sima, a sole proprietor craftsman,...Ch. 8 - Cox Construction, a company in its 10th year of...Ch. 8 - Stem Corp. bought a machine in February of year 7...Ch. 8 - Prob. 4CPACh. 8 - Data, Inc., purchased and placed in service a...Ch. 8 - Data, Inc., purchased and placed in service 5,000...Ch. 8 - Which statement below is correct? a. Real property...
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- James purchased office equipment for his business. The equipment has a depreciable basis of $7,000 and was put in service on June 1,2019. James decides to elect straightline depreciation under MACRS for the asset over the minimum number of years (7 years), and does not use bonus depreciation or make the election to expense. What is the amount of his depreciation deduction for the equipment for the 2019 tax year? $2,000 $1,000 $500 $0 None of the abovearrow_forwardOn May 1 , 2020, Helen places in service a new automobile that cost $25,000. It was the only asset placed in service that year. The car is used 60% for business and 40% for personal use. (Assume this percentage is maintained for the life of the car.) She does not take additional first-year depreciation. Determine the cost recovery deduction on the car for 2021arrow_forwardExercise 8-25 (LO. 4) On April 5, 2023, Kinsey places in service a new automobile that cost $70,000. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 75% for business and 25% for personal use in each tax year. Kinsey uses the regular MACRS method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this problem. Compute the total depreciation allowed for: 2023: 2024:arrow_forward
- On June 1, 2020, Irene places in service a new automobile that cost $45,000. The car is used 70% for business and 30% for personal use. (Assume this percentage is maintained for the life of the car). She does not take additional first-year depreciation but instead uses the 5-year (200% DB). Determine the cost recovery deduction for 2020 and 2021.arrow_forwardIn 2021, Ben purchases and places in service a new auto for his business. The auto costs $57,000 and will be used 100 percent for business. Assuming the half-year convention applies and Ben does not elect out of bonus depreciation, what will be the depreciation on the auto in 2021? a.$10,000 b.$18,200 c.$18,100 d.$57,000 e.None of these choices are correct.arrow_forwardOn April 30, 2019, Leo purchased and placed in service a new car that cost $76,200. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any § 179. If required, round your answers to the nearest dollar. a. What MACRS convention applies to the new car? Half-year. b. Is the automobile considered "listed property"? Yes. c. Leo's cost recovery deduction in 2019 is $_______ and for 2020 is $_______.arrow_forward
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