At the beginning of its 2015 tax year, Hiram owned the following business assets:
On July 8, Hiram sold its equipment. On August 18, it purchased and placed in ser-vice new tools costing $89,000; these tools are three-year recovery property. These were Hiram’s only capital transactions for the year. Compute Hiram’s cost recovery deduction for 2015. In making your computation, assume that taxable income before depreciation exceeds $500,000.
Answer to relevant QuestionsIn April 2014, Lenape Corporation acquired new business machinery with a total cost of $775,000. Assuming the machinery qualifies for both the Section 179 deduction and bonus depreciation, calculate Lenape’s total cost ...On April 23, Mrs. Y purchased a taxi business from Mr. M for a $60,000 lump-sum price. The business consisted of a two-year-old taxicab worth $19,000, Mr. M’s license to operate a taxi business in Baltimore, his list of ...In year 1, Firm A paid $50,000 cash to purchase a tangible business asset. In year 1 and year 2, it deducted $3,140 and $7,200 depreciation with respect to the asset. Firm A’s marginal tax rate in both years was 35 ...Elsworthy Company operates a number of public golf courses in Florida. This year, Elsworthy constructed six new greens of a type described as “modern” greens. Modern greens contain sophisticated drainage systems that ...BBB Company, which manufactures industrial plastics, owns the following assets. Characterize each asset as either a capital, ordinary, or Section 1231 asset. a. A computer system used in BBB’s main office. b. A 50 percent ...
Post your question