How much is the maximum cost recovery deduction for 2019? Assuming they claimed the maximum in 2020, how much is deductible in 2023? Assuming the trucks were sold for $975,000 on September 23, 2023, how much is the 2023 cost recovery deduction?
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Brookins Enterprises, a trucking company, purchased the following during 2019:
New long-haul trucks costing $2,080,000, purchased September 23, 2020.
- How much is the maximum cost recovery deduction for 2019?
- Assuming they claimed the maximum in 2020, how much is deductible in 2023?
- Assuming the trucks were sold for $975,000 on September 23, 2023, how much is the 2023 cost recovery deduction?
- Answer the above questions if Brookins elects out of bonus
depreciation and does not elect under §179.
President’s used vehicle (2018 Subaru Ascent, an SUV weighing 6,001 pounds) costing $26,500.
- How much is the maximum cost recovery deduction for 2020, assuming the owners have adequate net income?
- Assuming they claimed the maximum in 2020, how much is deductible in 2022?
Nonresidential real estate purchased for $875,000 ($165,000 assigned to land); placed in service May 18, 2020. How much is deductible in 2020? How much for 2029? How much for 2030 if the real estate is sold on January 2, 2030?
Brookins purchased a competing business in April 2019, including $537,500 allocated to
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- Bebe Co. purchased equipment with an invoice price of P1,680,000 on March 5, 2021. How much would be the claimable input VAT on the second quarter of 2021? Bebe Co. purchased equipment with an invoice price of P1,680,000 on March 5, 2022. How much would be the claimable input VAT on the second quarter of 2021? Bebe Co. purchased equipment costing P560,000 on March 5, 2021. How much would be the claimable input VAT on the second quarter of 2021?Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2019. Blue had the following expenses in connection with the project: Salaries Materials Insurance Utilities Cost of inspection of materials for quality control Promotion expenses Advertising Equipment depreciation Cost of market survey Amount of the deduction 2019 Amount of the deduction $500,000 $600,000 70,000 11,000 90,000 8,000 6,000 Amount of the deduction 7,000 11,000 0 15,000 8,000 2020 8,000 2019 6,000 18,000 The new product will be introduced for sale beginning in July 2021. Determine the amount of the deduction for research and experimental expenditures for 2019, 2020, 2021, and 2022. 20,000 If an amount is zero, enter "0". Calculate the monthly expense to the nearest dollar and use in subsequent computations. a. If Blue Corporation elects to expense the research and experimental expenditures, what will the amount of the deduction be? 14,000 0 2020 b. If Blue…Brookins Enterprises, a trucking company, purchased the following during 2019: New long-haul trucks costing $2,080,000, purchased September 23, 2020. How much is the maximum cost recovery deduction for 2019? Assuming they claimed the maximum in 2020, how much is deductible in 2023? Assuming the trucks were sold for $975,000 on September 23, 2023, how much is the 2023 cost recovery deduction? Answer the above questions if Brookins elects out of bonus depreciation and does not elect under §179. President’s used vehicle (2018 Subaru Ascent, an SUV weighing 6,001 pounds) costing $26,500. How much is the maximum cost recovery deduction for 2020, assuming the owners have adequate net income? Assuming they claimed the maximum in 2020, how much is deductible in 2022? Nonresidential real estate purchased for $875,000 ($165,000 assigned to land); placed in service May 18, 2020. How much is deductible in 2020? How much for 2029? How much for 2030 if the real estate is sold on January…
- In 2019, Austin Powers Corporation developed a new product that will be marketed in 2020. In connection with the development of this product, the following costs were incurred in 2019: research and development costs $400,000, materials and supplies consumed $60,000, and compensation paid to research consultants $125,000. It is anticipated that these costs will be recovered in 2022. What is the amount of research and development costs that Austin Powers should record in 2019 as a charge to expense?Waterway Company purchased Machine #201 on May 1, 2020. The following information relating to Machine # 201 was gathered at the end of May. Price Credit terms Freight-in Preparation and installation costs Labor costs during regular production operations (a) It is expected that the machine could be used for 10 years, after which the salvage value would be zero. Waterway intends to use the machine for only 8 years, however, after which it expects to be able to sell it for $2,070. The invoice for Machine #201 was paid May 5, 2020. Waterway uses the calendar year as the basis for the preparation of financial statements. (1) (2) Compute the depreciation expense for the years indicated using the following methods. (3) Straight-line method for 2020 $117,300 Sum-of-the-years'-digits method for 2021 2/10, n/30 Double-declining-balance method for 2020 $1,104 $5,244 $14,490 $ LA $ $ Depreciation ExpenseSandstorm Corporation decides to develop a new line of paints. The project begins in 2023. Sandstorm incurs the following expenses in 2023 in connection with the project: Salaries $170,000 Materials 51,000 Depreciation on equipment 25,500 The benefits from the project were realized starting in July 2024. If an amount is zero, enter "0". What are Sand-storm’s related deductions in 2023 and 2024 in connection with the project?
- On January 1, 2021 Tractor Company will acquire a new asset that costs $450,000 and that is anticipated to have a salvage value of $31,000 at the end of four years. The new asset: qualifies as three-year property under the Modified Accelerated Cost Recovery System (MACRS) will replace an old asset that currently has a tax basis of $86,000 and that can be sold on this date for $66,000 (net of selling costs) will continue to generate the same operating revenues as the old asset ($170,000 per year). However, it is predicted that savings in cash operating costs will be experienced as follows: a total of $80,000 in each of the first three years, and $93,000 in the fourth year. Tractor is subject to a combined income tax rate, t, of 40% and rounds all computations to the nearest dollar. Tractor's fiscal year coincides with the calendar year. Assume that any gain or loss affects the taxes paid at the end of the year in which the gain or loss occurs. The company uses the net present value…On January 1, 2021 Tractor Company will acquire a new asset that costs $450,000 and that is anticipated to have a salvage value of $31,000 at the end of four years. The new asset: qualifies as three-year property under the Modified Accelerated Cost Recovery System (MACRS) will replace an old asset that currently has a tax basis of $86,000 and that can be sold on this date for $66,000 (net of selling costs) will continue to generate the same operating revenues as the old asset ($170,000 per year). However, it is predicted that savings in cash operating costs will be experienced as follows: a total of $80,000 in each of the first three years, and $93,000 in the fourth year. Tractor is subject to a combined income tax rate, t, of 40% and rounds all computations to the nearest dollar. Tractor's fiscal year coincides with the calendar year. Assume that any gain or loss affects the taxes paid at the end of the year in which the gain or loss occurs. The company uses the net present value…In 2019, the Sackville Furniture Company bought a new band saw for $380,000. Aside from depreciation expenses, its yearly expenses totalled $1,100,000 versus $1,700,000 in income. How much tax (at 40 percent) would the company have paid in 2019 if it had been permitted to use each of the following depreciation schemes? a. Straight-line, with a life of 10 years and a zero salvage value b. Straight-line, with a life of five years and a zero salvage value c. Declining-balance, at 20 percent d. Declining-balance, at 50 percent e. Fully expensed that year
- Can you please help me with this through a solution to get the answer? JAY Inc. decided to revalue its machine on December 31, 2019, and determined that the current replacement cost is $1,500,000. The machine, which was purchased last January 1, 2017 for $1,000,000, has a carrying value of $400,000. The entity has been consistent in depreciating its machine using the straight-line method. On September 1, 2021, the entity sold the machine for $140,000. How much is the revaluation surplus as of December 31, 2019 after revaluation?Please provide detailed solution to get the answer. Present it please in excel with explanations for me to further understand. Thank you so much! PROBLEM 2: NOREEN INC, a truck dealer, sells a truck on January 1, 2019, to MENDOZA INC for 3,000,000. NOREEN agrees to repurchase the truck on December 31, 2020 for 3,630,000. Requirement: Assuming a 10% is imputed in the agreement, how much is the liability of NOREEN on January 1, 2019? A. 1,500,000 B. 1,815,000 C. 3,000,000 D. 3,630,000 Using the information above, what is the interest expense for 2019? A. None B. 300,000 C. 330,000 D. 630,000 How much should NOREEN INC record interest and retirement of its liability to MENDOZA INC on December 31, 2020? A. None B. 300,000; 3,600,000 C. 330,000; 3,630,000 D. 630,000; 3,630,000Irwin, Incorporated constructed a machine at a total cost of $68 million. Construction was completed at the end of 2020 and the machine was placed in service at the beginning of 2021. The machine was being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $2 million. At the beginning of 2024, Irwin decided to change to the straight-line method. Ignoring income taxes, prepare the journal entry relating to the machine for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).