Assume that Sivart Corporation has 2022 taxable income of $1,750,000 for purposes of computing the $179 expense and acquired several assets during the year. Assume the delivery truck does not qualify for bonus depreciation. (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5.) Asset Placed in Service June 12 Basis $ 1,440,000 February 10 70,000 August 21 93,000 310,000 $1,913,000 Machinery Computer equipment Delivery Truck-used Furniture Total April 2
Assume that Sivart Corporation has 2022 taxable income of $1,750,000 for purposes of computing the $179 expense and acquired several assets during the year. Assume the delivery truck does not qualify for bonus depreciation. (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5.) Asset Placed in Service June 12 Basis $ 1,440,000 February 10 70,000 August 21 93,000 310,000 $1,913,000 Machinery Computer equipment Delivery Truck-used Furniture Total April 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Assume that Sivart Corporation has 2022 taxable income of $1,750,000 for purposes of computing the $179 expense and
acquired several assets during the year. Assume the delivery truck does not qualify for bonus depreciation. (Use MACRS
Table 1. Table 2. Table 3. Table 4 and Table 5.)
Asset
Placed in
Service
Machinery
Computer equipment
Delivery Truck-used
Furniture
Total
June 12
February 10
August 21
April 2
Basis
$ 1,440,000
70,000
93,000
310,000
$ 1,913,000
b. What is the maximum total depreciation (5179, bonus, MACRS) that Sivart may deduct in 2022 on the assets it placed in service in
2022?
Answer is complete but not entirely correct.
Maximum total depreciation deduction (including $179 expense)
$ 1,993,000 (](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fffa33e59-f650-4960-8c87-0b17ccef6b04%2Fecc57d37-2310-41c2-9e5e-30bf3ec19eb5%2F1bbak4a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Assume that Sivart Corporation has 2022 taxable income of $1,750,000 for purposes of computing the $179 expense and
acquired several assets during the year. Assume the delivery truck does not qualify for bonus depreciation. (Use MACRS
Table 1. Table 2. Table 3. Table 4 and Table 5.)
Asset
Placed in
Service
Machinery
Computer equipment
Delivery Truck-used
Furniture
Total
June 12
February 10
August 21
April 2
Basis
$ 1,440,000
70,000
93,000
310,000
$ 1,913,000
b. What is the maximum total depreciation (5179, bonus, MACRS) that Sivart may deduct in 2022 on the assets it placed in service in
2022?
Answer is complete but not entirely correct.
Maximum total depreciation deduction (including $179 expense)
$ 1,993,000 (
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