MCGRAW-HILL'S TAX.OF INDIV.+BUS.2020
20th Edition
ISBN: 9781259969614
Author: SPILKER
Publisher: MCG
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Textbook Question
Chapter 10, Problem 51P
On November 10 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,200,000; $300,000 was allocated to the basis of the land and the remaining $900,000 was allocated to the basis of the building.
- a) Using MACRS, what is Javier’s
depreciation deduction on the building for years 1 through 3? - b) What would be the year 3 depreciation deduction if the building was sold on August 1 of year 3?
- c) Answer the question in part (a), except assume the building was purchased and placed in service on March 3 instead of November 10.
- d) Answer the question in part (a), except assume that the building is residential property.
- e) What would be the depreciation for 2019, 2020, and 2021 if the property were nonresidential property purchased and placed in service November 10, 2002 (assume the same original basis)?
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On November 10 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,300,000; 15% was allocated to the basis of the land and the remaining 85% was allocated to the basis of the building. Using MACRS, what is Javier’s depreciation expense on the building for year 2?
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On November 10 of year 1, Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,200,000; $300,000 was allocated to the basis of the land and the remaining $900,000 was allocated to the basis of the building.
a) Assume the building was purchased and placed in service on March 3 instead of November 10. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3?
b) Assume the building is residential property. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3?c) What would be the depreciation for 2022, 2023, and 2024 if the property were nonresidential property purchased and placed in service November 10, 2005 (assume the same original basis)?
Chapter 10 Solutions
MCGRAW-HILL'S TAX.OF INDIV.+BUS.2020
Ch. 10 - Explain why certain long-lived assets are...Ch. 10 - Prob. 2DQCh. 10 - Explain the similarities and dissimilarities...Ch. 10 - Is an assets initial or cost basis simply its...Ch. 10 - Prob. 5DQCh. 10 - Explain why the expenses incurred to get an asset...Ch. 10 - Graber Corporation runs a long-haul trucking...Ch. 10 - What depreciation methods are available for...Ch. 10 - If a business places several different assets in...Ch. 10 - Prob. 38P
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