Give me correct answer with explanation.j Problem 07-22 (Static) [LO 7-5, 7-7]Margo, a calendar year taxpayer, paid $1,580,000 for new machinery (seven-year recovery property) placed in service on August 1,2023. Use Table 7-2Required:a. Assuming that the machinery was the only tangible property placed in service during the year, compute Margo's maximum costrecovery deduction. Note that for 2023 the maximum Section 179 deduction was $1,160,000.b. How would your computation change if Margo paid $3,100,000 for the machinery? Note that for 2023 the Section 179 deductionthreshold amount was $2,890,000.c. How would your computation change if Margo paid $4,750,000 for the machinery?d. How would your answer to part (a) change if the machinery was purchased in 2022 instead of 2023?Note: For all requirements, round your intermediate computations to the nearest whole dollar amount.Answer is complete but not entirely correct.Amounta. DeductionS1,160,000 ×b. Deduction$1,344,579c. DeductionS1,442,823d. DeductionS1,160,000

The Modified Accelerated Cost Recovery System (MACRS) is a methodology for tax depreciation in the…

Answered: Margo, a calendar year taxpayer, paid…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter17: Business Tax Credits And The Alternative Minimum Tax

Section: Chapter Questions

Problem 20P

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Problem 07-22 (Static) [LO 7-5, 7-7] Margo, a calendar year taxpayer, paid $1,580,000 for new machinery (seven-year recovery property) placed in service on August 1, 2023. Use Table 7-2. Required: a. Assuming that the machinery was the only tangible property placed in service during the year, compute Margo's maximum cost recovery deduction. Note that for 2023 the maximum Section 179 deduction was $1,160,000. b. How would your computation change if Margo paid $3,100,000 for the machinery? Note that for 2023 the Section 179 deduction threshold amount was $2,890,000. c. How would your computation change if Margo paid $4,750,000 for the machinery? d. How would your answer to part (a) change if the machinery was purchased in 2022 instead of 2023? Note: For all requirements, round your intermediate computations to the nearest whole dollar amount. Answer is complete but not entirely correct. a. Deduction b. Deduction c. Deduction d. Deduction Amount S 1,160,000 X S 1,344,579 > 1,442,823 S S…
Problem 07-22 (Static) [LO 7-5, 7-7] Margo, a calendar year taxpayer, paid $1,580,000 for new machinery (seven-year recovery property) placed in service on August 1, 2023. Use Table 7-2. Required: a. Assuming that the machinery was the only tangible property placed in service during the year, compute Margo's maximum cost recovery deduction. Note that for 2023 the maximum Section 179 deduction was $1,160,000. b. How would your computation change if Margo paid $3,100,000 for the machinery? Note that for 2023 the Section 179 deduction threshold amount was $2,890,000. c. How would your computation change if Margo paid $4,750,000 for the machinery? d. How would your answer to part (a) change if the machinery was purchased in 2022 instead of 2023? Note: For all requirements, round your intermediate computations to the nearest whole dollar amount. Answer is complete but not entirely correct. Amount a. Deduction $ 1,160,000 x b. Deduction $ 1,344,579 x c. Deduction $ 1,442,823 d. Deduction $…
Problem 07-22 (Static) [LO 7-5, 7-7] Margo, a calendar year taxpayer, paid $1,580,000 for new machinery (seven-year recovery property) placed in service on August 1, 2023. Use Table 7-2. Required: a. Assuming that the machinery was the only tangible property placed in service during the year, compute Margo's maximum cost recovery deduction. Note that for 2023 the maximum Section 179 deduction was $1,160,000. b. How would your computation change if Margo paid $3,100,000 for the machinery? Note that for 2023 the Section 179 deduction threshold amount was $2,890,000. c. How would your computation change if Margo paid $4,750,000 for the machinery? d. How would your answer to part (a) change if the machinery was purchased in 2022 instead of 2023? Note: For all requirements, round your intermediate computations to the nearest whole dollar amount. a. Deduction b. Deduction c. Deduction d. Deduction X Answer is not complete. $ $ Amount 1,508,004 1,580,000
A taxpayer places a $1,050,000 5-year recovery period asset in service in 2020. This is the only asset placed in service in 2020. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)? a.$210,000 b.$1,040,000 c.$1,026,000 d.$1,050,000 e.$1,042,000
S Problem 07-14 (Algo) [LO 7-5] Herelt, Incorporated, a calendar year taxpayer, purchased equipment for $393,200 and placed it in service on April 1, 2023. The equipment was seven-year recovery property, and Herelt used the half-year convention to compute MACRS depreciation. Use Table 7- 2. Required: a. Compute Herelt's MACRS depreciation with respect to the equipment for 2023 and 2024. b. Compute Herelt's adjusted basis in the equipment on December 31, 2024. c. Compute Herelt's MACRS depreciation for 2025 if it disposes of the equipment on February 9, 2025. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute Herelt's MACRS depreciation with respect to the equipment for 2023 and 2024. Note: Round your final answers to the nearest whole dollar amount. Depreciation 2023 2024
1) Kristine sold one asset on March 20th of 2023. It was a computer with an original basis of $10,000, purchased in May of 2021 and depreciated under the half-year convention. What is Kristine's depreciation deduction for 2023? Note: Round final answer to the nearest whole number. Blank] Blank 1 Add your answer
A taxpayer places a $50,000 5-year recovery period asset (not an auto) in service in 2021. This is the only asset placed in service in 2021. Assuming half-year convention, bonus depreciation, and taxable income before cost recovery of $5,000, what is the amount of cost recovery in 2021? a.$5,000 b.$25,000 c.$30,000 d.$0 e.$50,000
H6. A taxpayer places a $53,000 5-year recovery period asset (not an auto) in service in 2022. This is the only asset placed in service in 2022. Assuming no special elections (e.g., election to expense), what is the amount of total cost recovery deduction? a. $17,490 b. $53,000 c. $10,600 d. $5,300
18. Ryland Company, a calendar year taxpayer, purchased commercial realty for $2 million and allocated $200,000 cost to the land and $1.8 million cost to the building. Ryland placed the real estate in service on May 21. a. Compute Ryland's MACRS depreciation with respect to the realty for the year of purchase. b. How would your answer change if Ryland placed the realty in service on September 2 instead of May 21? c. How would your answer to part (a) change if the building was a residential apartment complex instead of a commercial office?
V1. The home was acquired for $83,000 in 2005. On May 12, 2021, the Arcs installed new fixtures (7-year recovery period) at a cost of $3,400. They wish to maximize the cost recovery on the new fixtures but make no elections. how do I calculate Special depreciation allowance for qualified property
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
A taxpayer places a $50,000 5-year recovery period asset in service in 2020. This is the only asset placed in service in 2020. Assuming half-year convention, no immediate expensing, what is the amount of bonus depreciation? a.$50,000 b.$10,000 c.$25,000 d.$0 e.None of these choices are correct.

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