Required information Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.) Asset Machinery Computer equipment Delivery truck Furniture Date Placed in Service October 25 February 3 March 17 April 22 Original Basis $ 116,000 56,000 69,000 196,000 Total $ 437,000 The delivery truck is not a luxury automobile. In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $760,000. b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take §179 expense)? Note: Round your intermediate calculations to the nearest whole dollar amount. MACRS depreciation

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Fitness Department purchased a building on a tract of land and allocated the entire cost of the purchase to building. Normally the company depreciates buildings over 40 years using the straight-line method with zero residual value and does not depreciate land. What is the impact of the improper accounting treatment of the purchase on the company's net income for the life of the building? a.understated b.unaffected c.overstated d.indeterminable from the information provided

(0) Problem 10-54 (LO 10-2, LO 10-3) (Algo) Skip to question Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.) Asset Date Placed in Service Original Basis Machinery October 25 $ 102,000 Computer equipment February 3 42,000 Delivery truck* March 17 55,000 Furniture April 22 182,000 Total $ 381,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $620,000. Problem 10-54 Part b (Algo) b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take 179 expense)?

Haresh

Munabhai

Vishanu

P9-1A Acquisition Cost of Long-Lived Assets The following items represent expenditures (or receipts) related to the construction of a new home office for Lowery Company. Cost of land site, which included an old apartment building appraised at $75,000   $173,000 Legal Fees, including fee for the title search                                                              2, 100 Payment of apartment building mortgage and related interest due at time of sale     9,300 Payment for delinquent property taxes assumed by the purchaser                            6,000 Cost of razing the apartment building                                                                        17,000 Proceeds from sale of salvaged materials                                                                   (3,800) Grading to establish proper drainage flow on land site                                              2, 100 Architect’s fees on new building…

! Required information [The following information applies to the questions displayed below.] Burbank Corporation (calendar year-end) acquired the following property this year: (Use MACRS Table 1, Table 2 and Exhibit 10-10.) Asset Used copier New computer equipment Furniture New delivery truck Luxury auto Placed in Service November Basis 12 $ 7,800 June 6 14,000 July 15 October 28 January 31 32,000 19,000 70,000 $ 142,800 Total Burbank acquired the copier in a tax-deferred transaction when the shareholder contributed the copier to the business in exchange for stock. (Round your answer to the nearest whole dollar amount.) b. Assuming Burbank would like to maximize its cost recovery deductions by claiming bonus and §179 expense, which assets should Burbank immediately expense? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any…