In 2020, Murphy Manufacturing Inc. acquired and placed in service a piece of machinery to manufacture interactive toys for dogs. The following costs were associated with the machinery: Purchase price from vendor$2,130,000 Tax on purchase price $150,000 Shipping/Delivery$20,000 Insurance for Shipping$5,000 Installation/Calibration$15,000 On-going support contract$10,000/year Routine annual cleaning$2,000/year Montgomery Manufacturing placed a piece of equipment (7 year property) in service on April 1, 2020. It’s cost was $2,550,000. It was the only asset placed in service in 2020. How much 179 expense deduction can they take and What is the remaining depreciable basis after the 179 elections?

On January 1, 2022, Alkek Company purchased the following two machines for use in its production process. Machine A - The cash price of this machine was $38,000. Related expenditures included: sales tax $1,700, shipping costs $150, insurance during shipping $80, installation and testing costs $70, and $100 of oil and lubricants to be used with the machinery during its first year of operations.  Alkek estimates that the useful life of the machine is 5 years with a $5,000 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. Machine B  - The recorded cost of this machine was $160,000. Alkek estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period. Calculate the amount of depreciation expense that Alkek Company should record for machine A and B (seperately) for each year of its useful life under the following assumptions. (a)  Alkek uses the straight-line…

In August 2024, Carla Vista Helicopters Ltd. purchased a new helicopter for its logging and heavy lift operations at a cost of $1.05 million. Based on past experience, management has determined that the helicopter will have a useful life of 18,000 flying hours, at which time it will have an estimated residual value of $150,000. During 2024, the helicopter was used for 1,800 flying hours, and in 2025 it was used for 2,000 flying hours. Carla Vista Helicopters has a December 31 year end and uses the units-of-production method of depreciation for its helicopters. Determine the depreciation expense on this helicopter for 2025 and its carrying amount at December 31, 2025. Depreciation expense $ Carrying amount $ 2025

Cimi Manufacturing had the following transactions related to the purchase of long-term assets. During 2025, purchased land for $380,000 with plans to build a new facility.  The company pays $23,500 to demolish a building that was on the land and an additional $17,000 to grade the land in preparation for the new building.  Construction cost of the new building was $$2,100,000.  The parking lot and related lighting cost $41,000.  Cimi's employee wages during this time of construction were $214,000.  On Nov 5, 2025, Cimi purchased machinery to be install in the new facility.  the machine had a price of $28,000 with term 2/10, n/30, and FOB shipping point.  Cimi always pays within the discount period.  Transporation cost of $680 wer paid.  Additionally, the following costs related to installation of the machine were incurred:  installation cost $7,600 of which $5,000 of this was parts, testing costs of $900.  During installation, damage to a neighboring company's warehouse occured, costing…