At the beginning of its 2023 tax year, Hiram owned the following business assets: Date Placed in Service 6/19/2021 5/2/2020 9/30/2020 Furniture Equipment Machinery Initial Cost $30,750 70,000 58,000 Furniture Equipment Machinery Total MACRS Depreciation Section 179/bonus on new tools Maximum 2023 cost recovery deduction On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $589,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Answer is complete but not entirely correct. 2023 MACRS Depreciation Required: Compute Hiram's maximum cost recovery deduction for 2023. In making your computation, assume that taxable income before depreciation exceeds $2,000,000. Use Table 7-2. Note: Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dolla amount. $ Accumulated Recovery Depreciation Period 7-year 5-year 5-year. $ $ $11,925 49,840 41,296 5,378 4,032 6,682 16,092 29,257 45,349 Depreciation Convention Half-year Half-year Half-year

At the beginning of its 2023 tax year, Hiram owned the following business assets: Date Placed in Service 6/19/2021 5/2/2020 9/30/2020 Furniture Equipment Machinery Initial Cost $30,750 70,000 58,000 Furniture Equipment Machinery Total MACRS Depreciation Section 179/bonus on new tools Maximum 2023 cost recovery deduction On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $589,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Answer is complete but not entirely correct. 2023 MACRS Depreciation Required: Compute Hiram's maximum cost recovery deduction for 2023. In making your computation, assume that taxable income before depreciation exceeds $2,000,000. Use Table 7-2. Note: Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dolla amount. $ Accumulated Recovery Depreciation Period 7-year 5-year 5-year. $ $ $11,925 49,840 41,296 5,378 4,032 6,682 16,092 29,257 45,349 Depreciation Convention Half-year Half-year Half-year

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 5RE: Turnip Company purchased an asset at a cost of 10,000 with a 10-year life during the current year....

See similar textbooks

Similar questions

Turnip Company purchased an asset at a cost of 10,000 with a 10-year life during the current year. Turnip uses differing depreciation methods for financial reporting and income tax purposes. The depreciation expense during the current year for financial reporting is 1,000 and for income tax purposes is 2,000. Turnip is subject to a 30% enacted future tax rate. Prepare a schedule to compute Turnips (a) ending future taxable amount, (b) ending deferred tax liability, and (c) change in deferred tax liability (deferred tax expense) for the current year.
Chaz Corporation has taxable income in 2023 of $1,312,450 for purposes of computing the $179 expense and acquired the following assets during the year: Asset Office furniture Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total Placed in Service September 12 February 10 August 21 September 30 Maximum total depreciation deduction What is the maximum total depreciation deduction that Chaz may deduct in 2023? (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Basis $ 798,000 948,000 86,000 1,517,000 $ 3,349,000 $3,349,000 X
Chaz Corporation has taxable income in 2022 of $312,600 for purposes of computing the $179 expense and acquired the following assets during the year: Asset Office furniture Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total Placed in Service September 12 February 10 August 21 September 30 Maximum total depreciation deduction What is the maximum total depreciation deduction that Chaz may deduct in 2022? (Use MACRS Table 1. Table 2. Table 3, Table 4 and Table 5.) Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Basis $ 786,000 936,000 74,000 1,505,000 $ 3,301,000 =
Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations. If required, round your answers to nearest dollar. a. Amber Corporation donated inventory of clothing (basis of $128,500, fair market value of $160,625) to a qualified charitable organization that operates homeless shelters. X
Aqua Corporation purchases nonresidential real property on May 8, 2019, for $1,650,000. Straight-line cost recovery is taken in the amount of $165,000 before the property is sold on November 27, 2022, for $2,475,000. Question Content Area a. Compute the amount of Aqua's recognized gain on the sale of the realty $_______________ Determine the amount of the recognized gain that is treated as § 1231 gain and the amount that is treated as § 1250 recapture (ordinary income due to § 291). b. § 1231 gain: $_____________ § 1250 recapture (ordinary income due to § 291): $_______________________
Assume Rabbit Corporation (calendar year end) has 2021 taxable income of $500,000 for purposes of computing the §179 expense. During 2021, Rabbit acquired the following assets: Placed in Asset Machinery Service August 12 Computer Equipment February 10 April 2 Basis $2,150,000 365,000 480,000 Office Furniture Determine Rabbit's maximum cost recovery under the following situations: (a) Rabbit opts out of bonus depreciation but elects §179 Total Maximum Cost Recovery for 2021 (b) Rabbit does NOT opt out of bonus depreciation. Total Maximum Cost Recovery for 2021
Chaz Corporation has taxable income in 2023 of $1,312,250 for purposes of computing the §179 expense and acquired the following assets during the year: Placed in Asset Office furniture Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total Service September 12 February 10 August 21 September 30 Basis $ 790,000 940,000 78,000 1,509,000 $ 3,317,000 What is the maximum total depreciation deduction that Chaz may deduct in 2023? (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Maximum total depreciation deduction
Assume that Sivart Corporation has 2023 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 Machinery Computer equipment Delivery Truck-used Furniture Total Placed in Service 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 (§179, bonus, MACRS) that Sivart may deduct in 2023 on the assets it placed in service in 2023?
Chaz Corporation has taxable income in 2020 of $368,000 for purposes of computing the §179 expense and acquired the following assets during the year: Assume CARES Act applies. Placed in Asset Service Basis September 12 February 10 August 21 Office furniture $ Computer equipment Delivery truck Qualified improvement 691,000 934,000 67,000 September 30 1,535,000 property Total $ 3,227,000 What is the maximum total depreciation deduction that Chaz may deduct in 2020? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Maximum total depreciation deduction $ 2,103,479
Chaz Corporation has taxable income in 2022 of $314,800 for purposes of computing the $179 expense and acquired the following assets during the year; Asset Office furniture Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total Placed in Service September 12 February 10 August 21 September 30 Maximumn total depreciation deduction Basis $ 808,000 958,000 96,000 1,527,000 $ 3,389,000 What is the maximum total depreciation deduction that Chaz may deduct in 2022? (Use MACRS Table 1, Table 2. Table 3. Table 4 and Table 5.) Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
Omar Company owns a property which was revalued to $ 625,000 on 31 December 2018 with a revaluation gain of $250,000 being recognized as other comprehensive income and recorded in the revaluation surplus. At 31, December 2020 the property had a carrying amount of $575,000 but the recoverable amount of the property was estimated at only $250,000. 1- What is the amount of impairment? 2- How the revaluation and the impairment should be treated in the financial statements?
Chaz Corporation has taxable income in 2023 of $1,312,750 for purposes of computing the §179 expense and acquired the following assets during the year: Asset Office furniture Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total Placed in Service September 12 February 10 August 21 September 30 Maximum total depreciation deduction Basis $ 810,000 960,000 98,000 1,529,000 $ 3,397,000 What is the maximum total depreciation deduction that Chaz may deduct in 2023? (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Assessment Tool iFrame Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.