FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- please answer do not image.arrow_forwardSid bought a new $ 1,320,000 seven-year class asset on August 2, 2019. On December 2, 2019, he purchased $ 800,000 of used five-year class assets. If Sid elects Code Section 179 and does not take the additional first-year depreciation, what is the maximum cost recovery deduction for the purchases for 2019arrow_forward! Required information Problem 10-67 (LO 10-3) (Algo) [The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2023. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2023 and 2024 (Lina doesn't want to take bonus depreciation for 2023 or 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1. Table 2, and Exhibit 10-10.) Problem 10-67 Part c (Algo) c. The vehicle cost $82,400, and she used it 80 percent for business. Year 2023 2024 Depreciation deduction $6,592 $ 13,184arrow_forward
- Required information Problem 10-67 (LO 10-3) (Algo) [The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2023. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2023 and 2024 (Lina doesn't want to take bonus depreciation for 2023 or 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) Problem 10-67 Part b (Algo) b. The vehicle cost $82,000, and business use is 100 percent. Year 2023 2024 Depreciation deduction $ 12,200arrow_forwardNancy purchased new business computers (7-year property) in January for a total of $1,200,000. She plans to take advantage of §179 expensing and MACRS depreciation (but not first year additional depreciation). What is the total amount of her depreciation deduction?arrow_forwardHauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $65,000, and it has claimed $23,000 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leav no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.) Required: a. Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $50,000, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $20,000 in cash in year O and a $50,000 note receivable that is payable in year 1, compute th amount and character of Hauswirth's gain or loss in year O and in year 1. Complete this question by…arrow_forward
- Sagararrow_forwardpols On April 5, 2020, Kinsey places in service a new automobile that cost $60,000. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 70% for business and 30% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Assume the following luxury automobile limitations: year 1: $10,100; year 2: $16,100. Compute the total depreciation allowed for 2020 and 2021.arrow_forwardHazel purchased a new business asset (five-year asset) on September 30, 2021, at a cost of $100,000. On October 4, 2021, she placed the asset in service. This was the only asset she placed in service in 2021. Hazel did not elect § 179 or additional first-year depreciation. On August 20, 2022, Hazel sold the asset. Determine the cost recovery for 2022 for the asset. $38,000 Ob $14,250 O $23,750 Od $19,000arrow_forward
- Peter's Records purchases a new desktop computer for $8,900, on the 1st January 2020 The computer is expected to have a useful life of 5 years, and a residual value of $500. Peter applies the Reducing-balance depreciation method to all his computer equipment. Peter applies the formula '2 x Straight-line rate'. Therefore, the depreciation expense Peter would record, for the 2nd Year (1st January 2021 to 31st December 2021) for the computer, would be: Select one: a. $2,136 b. $2,360 c. $3,540 O d. $1,326arrow_forwardNancy purchased a projector screen on July 15, 2019, for $1,200. The screen was used 70% of the time in her business and the rest of the time her children used the screen to watch movies. In 2019, the computer was used 40% for business and 60% for personal use. What are the cost recovery deductions for 2019 and 2020? (No §179 or bonus). Is there any recapture of depreciation in 2020?arrow_forwardOn June 1, 2020, Irene places in service a new automobile that cost $45,000. The car is used 70% for business and 30% for personal use. (Assume this percentage is maintained for the life of the car). She does not take additional first-year depreciation but instead uses the 5-year (200% DB). Determine the cost recovery deduction for 2020 and 2021.arrow_forward
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