L0.2J 3J 9 On June 5, 2018, Javier Sanchez purchased and placed in service a new 7-year class asset costing $560,OOO for use in his landscaping  businessJ which he operates as a single member LLC (Sanchez Landscaping LLC). During 2018, his business generated a net income of $945, 780 before any § 179 immediate expense election.   Rather than using bonus depreciationJ Javier would like to use 179 to expense $200,OOO of this asset and then use regular MACRS to cost recover the remaining cost. Given this information, determine  the cost recovery  deductions  that Javier can claim with respect to this asset in 2018 and 2019. Complete Javier's Form 4562 (page 1) for 201 His Social Security number is 123-45- 6789.

Problem 8-34 (LO. 2) Weston acquires a new office machine (seven-year class asset) on August 2, 2017, for $75,000. This is the only asset Weston acquired during the year. He does not elect immediate expensing under § 179. He claims the maximum additional first-year depreciation deduction. On September 15, 2019, Weston sells the machine. Click here to access the depreciation tables in the textbook. If required, round your answers to the nearest dollar. a.  Determine Weston’s cost recovery for 2017 and 2018.2017: $fill in the blank 12018: $fill in the blank 2 b.  Determine Weston’s cost recovery for 2019.$fill in the blank 3

Sh9

7

Exercise 8-19 (LO. 2) Euclid acquires a 7-year class asset on May 9, 2020, for $80,000 (the only asset acquired during the year). Euclid does not elect immediate expensing under § 179. He does not claim any available additional first-year depreciation. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Calculate Euclid's cost recovery deduction for 2020 and 2021.2020: $2021: $     8-7cCost Recovery Tables Summary of Tables Exhibit 8.3 Regular MACRS table for personalty. Depreciation methods: 200 or 150 percent declining-balance switching to straight-line. Recovery periods: 3, 5, 7, 10, 15, 20 years. Convention: half-year. Exhibit 8.4 Regular MACRS table for personalty. Depreciation method: 200 percent declining-balance switching to straight-line. Recovery periods: 3, 5, 7 years. Convention: mid-quarter. Exhibit 8.5 MACRS optional straight-line table for personalty.…

ces On May 12, 2022, Nelson Incorporated purchased eight passenger automobiles for its business. Nelson did not make a Section 179 election to expense any portion of the cost of the automobiles, which are five-year recovery property subject to the half-year convention. Assume there is no bonus depreciation or Section 179 deduction. Use Table 7-1 and Table 7-2. Use the below table for annual depreciation deduction for year 2022 to 2025: 2022 2023 2024 2025 and subsequent years $ 11, 200 18,000 10,800 6,460 Required: a. Compute Nelson's depreciation deduction with respect to the automobiles for 2022 and 2023 assuming the automobiles were Mini Coopers costing $14,300 each. b. Compute Nelson's depreciation deduction with respect to the automobiles for 2022 and 2023 assuming the automobiles were Cadillacs costing $60,000 each. Complete this question by entering your answers in the tabs below. Required A Required B

nku.5

A-1

Exercise 8-24 (LO. 3) McKenzie purchased qualifying equipment for his business that cost $212,000 in 2020. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. If an amount is zero, enter "0". a.  Calculate McKenzie's § 179 expense deduction for 2020 and any carryover to 2021.§ 179 expense deduction for 2020: $fill in the blank 1§ 179 carryover to 2021: $fill in the blank 2 b.   How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using § 179 expensing? Hint: See Concept Summary 8.3.§ 179 expense deduction for 2020: $fill in the blank 3§ 179 carryover to 2021: $fill in the blank 4       Summary of Tables Exhibit 8.3 Regular MACRS table for personalty. Depreciation methods: 200 or 150 percent declining-balance switching to straight-line. Recovery periods: 3, 5, 7, 10, 15, 20 years. Convention: half-year.

Exercise 5-5 (LO. 7) On November 23, 2023, Hamlet acquires and places in service a 7-year class asset with a cost of $100,000 (the only asset acquired during the year). Hamlet does not elect immediate expensing under § 179. He does not claim any available additional first-year (bonus) depreciation. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Calculate Hamlet's cost recovery deduction for 2023 and 2024. 2023: $ 7,143 X 24,490 X 2024: $