Chaz Corporation has taxable income in 2017 of $360,000 for purposes of computin

Question

Chaz Corporation has taxable income in 2017 of $360,000 for purposes of computing the 5179 expense and acquired the following assets during the year: Placed in Asset Service Basis Office furniture Computer equipment Delivery truck Total September 12 1,250,000 930,000 65,000 $ 2,245,000 February 10 August 21 What is the maximum total depreciation expense that Chaz may deduct in 2017? (Use MACRS Table 1. Table 2. Table 3, Table 4 and Table 5.) (Round your answer to the nearest whole dollar amount.) Maximum total depreciation expense

Explanation / Answer

Asset Original Basis §179 Depreciation expense Remaining Basis Bonus Depreciation 50% Remaining Basis MACR Rate Depreciation expenses Office furniture (7 years) $1,250,000.00 $255,000.00 $995,000.00 $497,500.00 $497,500.00 14.29% $71,092.75 Computer equipment (5 years) $930,000.00 $930,000.00 $465,000.00 $465,000.00 20.00% $93,000.00 Delivery truck (5 years) $65,000.00 $65,000.00 $32,500.00 $32,500.00 20.00% $6,500.00 Total $255,000.00 $995,000.00 §179 Depreciation expense $255,000.00 Total Bonus Depreciation $995,000.00 Total Depreciation Expenses $1,420,592.75 Chaz will receive the most benefit by applying the §179 amount to the furniture 7­year property. §179 Depreciation expense Property placed in service (a) $2,245,000.00 Threshold for §179 phase­out (b) $2,000,000.00 Phase­out of maximum §179 expense (c) $245,000.00 Maximum 179 expense before phase­out (d) $500,000.00 Phase­out of maximum §179 expense (c) $245,000.00 Maximum §179 expense after phase­out (d-c) $255,000.00

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---