n Year 1, T, a calendar year taxpayer, decided to move her insurance business into another office building. She purchased a used building for $700,000 (excluding the land) on March 15. T also purchased new office furniture for the building. The furniture was acquired for $200,000 on May 1. Compute MACRS depreciation. Ignore first-year expensing and bonus depreciation. MACRS depreciation tables are located in the Appendix. Compute T’s depreciation deduction for Year 1. Use Formula Method for Building.

At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the year:     Date Cost Asset Acquired Basis Computers 1/30 $ 55,000 Office desks 2/15 $ 59,000 Machinery 7/25 $ 102,000 Office building 8/13 $ 436,000     Assuming Anna does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)     a. What is Anna’s year 1 cost recovery for each asset?     b. What is Anna’s year 2 cost recovery for each asset?

On May 28, 2020, Mary purchased and placed in service a new $60,000 car. The car was used 60% for business, 20% for production of income, and 20% for personal use in 2020. In 2021, the usage changed to 40% for business, 30% for production of income, and 30% for personal use. Mary did not elect immediate expensing under § 179. She did not claim any available additional first-year depreciation. Compute Mary's cost recovery deduction for 2020 and 2021 and any cost recovery recapture in 2021.

The Jordan Corp (C Corporation), a calendar year taxpayer, sold a piece of equipment, a piece of machinery, and a warehouse on March 30, 2021. Data on these disposals are as follows: The equipment was purchased on February 20, 2016 for $50,000. It was sold for $60,000 cash. After calculating 2021 depreciation, accumulated depreciation totaled $45,538. The machinery was purchased on February 7, 2017 for $130,000. It was sold for $30,000 cash. After calculating 2021 depreciation, accumulated depreciation totaled $112,596. The building was purchased on March 1, 1991 for $2,000,000. It was sold for $1,325,000 cash. After calculating 2021 depreciation, accumulated depreciation totaled $1,589,743. The building had a mortgage with a balance of $200,000 that the buyer assumed from the Jordan Corp.   For each asset, Calculate the amount of the realized gain/loss Calculate the amount of the recognized gain/loss Calculate the amount and type of depreciation recapture, if any Calculate the…