A taxpayer places a $1,090,000 5-year recovery period asset in service in 2022. This is the only asset placed in service in 2022. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)?
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- Which of the following is not considered a limit on the immediate expensing election of Section 179? Fifty percent of qualified improvement property Total Section 179 -eligible property acquired in excess of $3,570,000 The taxable income of the taxpayer considering all income and deductions except for Section 179 immediate expensing An annual limit of $1,020,000 None of the aboveWhich of the following statements with respect to the depreciation of property under MACRS is incorrect? Under the half-year convention, one-half year of depreciation is allowed in the year the property is placed in service. If a taxpayer elects to use the straight-line method of depreciation for property in the 5 -year class, all other 5 -year class property acquired during the year must also be depreciated using the straight-line method. In some cases, when a taxpayer places a significant amount of property in service during the last quarter of the year, real property must be depreciated using a mid-quarter convention. Real property acquired after 1986 must be depreciated using the straight-line method. The cost of property to which the MACRS rate is applied is not reduced for estimated salvage value.A taxpayer places a $50,000 5-year recovery period asset in service in 2020. This is the only asset placed in service in 2020. Assuming half-year convention and an election to expense under Section 179 (no bonus depreciation), and taxable income after all deductions except Section 179 of $5,000, what is the amount of Section 179 immediate expensing? a.$50,000 b.$5,000 c.$0 d.$30,000 e.$25,000
- A taxpayer places a $50,000 5-year recovery period asset in service in 2020. This is the only asset placed in service in 2020. Assuming half-year convention, no immediate expensing, what is the adjusted basis of of the assets after applying 2020 bonus depreciation? a.$50,000 b.$25,000 c.$0 d.$10,000 e.None of these choices are correct.A taxpayer places a $50,000 5-year recovery period asset in service in 2020. This is the only asset placed in service in 2020. Assuming half-year convention, no immediate expensing, what is the amount of bonus depreciation? a.$50,000 b.$10,000 c.$25,000 d.$0 e.None of these choices are correct.A taxpayer places a $50,000 5-year recovery period asset (not an auto) in service in 2021. This is the only asset placed in service in 2021. Assuming no special elections (for example, election to expense), what is the amount of total cost recovery deduction? Oa. $25,000 Ob. $5,000 Oc. $30,000 Od. so Oe. $50,000
- A taxpayer places a $50,000 5-year recovery period asset (not an auto) in service in 2021. This is the only asset placed in service in 2021. Assuming half-year convention, bonus depreciation, and taxable income before cost recovery of $5,000, what is the amount of cost recovery in 2021? a.$5,000 b.$25,000 c.$30,000 d.$0 e.$50,000A company acquired an asset for $1,200,000 in 2024. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 19%. Amounts for pretax accounting income, depreciation, and taxable income in 2024, 2025, 2026, and 2027 are as follows: Asset's Cost Useful life Enacted tax rate Pretax accounting income Depreciation on the income statement Depreciation on the tax return Taxable income Required: Cumulative Temporary Difference Deferred Tax Liability Jan. 1, 2024 $1,200,000 $0 0 4 years 19% 2024 $3,700,000 300,000 (399,960) $3,600,040 2025 $4,100,000 300,000 (533,400) $3,866,600 For December 31 of each year, determine (a) the cumulative temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account. Each cell requires a formula, even if the result is $0. 2026 $4,400,000 300,000…Patterson Corporation uses the calendar year as its tax year. It acquires and places into service two depreciable assets during 2023: Asset #1: 7-year property; $980,000 cost; placed into service on January 20. Asset # 2: 5-year property; $440,000 cost; placed into service on August 1. View the MACRS half-year convention rates Read the requirements. Calculate Patterson's depreciation deductions for 2023. (Use MACRS rates to two decimal places, XXX%. Round the MACRS depreciation to the nearest dollar.) 2023 Depreciation Asset # 1 Asset #2 Total depreciation Patterson Corporation uses the calendar year as its tax year. It acquires and places into service two depreciable assets during 2023: Asset #1: 7-year property: $980,000 cost, placed into service on January 20. Asset #2: 5-year property: $440,000 cost; placed into service on August 1. View the MACRS half-year convention rates Read the requirements. . • Calculate Patterson's depreciation deductions for 2023. (Use MACRS rates to two…
- Euclid places in service a 7-year class asset on May 9, 2023, for $134,200 (the only asset acquired during the year). Euclid does not elect immediate expensing under § 179. He does not claim any available additional first-year depreciation. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Calculate Euclid's cost recovery deduction for 2023 and 2024. 2023: $ 2024: $Megha Nhon Corp., a vat registered taxpayer made the following acquisition of equipment from vat registered suppliers (net of vat) during 2021 and 2022: Date Purchase price Useful life (yrs) Oct. 1, 2021 2,000,000 6 Apr. 1, 2022 2,500,000 2 The equipment acquired on Oct. 2021 was sold on Apr. 2022. How much is the creditable input vat on Apr. 2022? P216,000 P324,000 P516,000 P300,000For calendar year 2023, Stuart and Pamela Gibson file a joint return reflecting AGI of $369,400. Their itemized deductions are as follows: Note: All expenses are before any applicable limitations, unless otherwise noted. Casualty loss in a Federally declared disaster area (not covered by insurance; before the 10%-of-AGI limitation but after the $100 floor) Home mortgage interest (loan qualifies as acquisition indebtedness) Credit card interest Property taxes on home Charitable contributions State income tax Tax return preparation fees $54,400 21,760 1,088 16,320 29,920 19,040 1,632 Round your final answers to the nearest whole dollar. Calculate the amount of itemized deductions the Gibsons may claim for the year.