At the beginning of its 2015 tax year, Hiram owned the following business assets: On July 8,
Question:
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.
Transcribed Image Text:
Date Placed Initial Accumulated Recovery Depreciation in Service Cost Depreciation Period Covention 6/19/13 $30,750 $11,925 70,000 49,840 Machinery 9/30/12 58,000 41,296 Half-year Half-year Half-year Furniture 7-year 5-year 5-year Equipment /2/12
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (11 reviews)
Hiram can expense and deduct 25000 of the cost of the tools pu...View the full answer
Answered By
Ajeet Singh
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions.
I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life.
I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge.
I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields.
Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a teacher. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students.
4.90+
7+ Reviews
15+ Question Solved
Related Book For
Principles Of Taxation For Business And Investment Planning 2016 Edition
ISBN: 9781259549250
19th Edition
Authors: Sally Jones, Shelley Rhoades Catanach
Question Posted:
Students also viewed these Business Law questions
-
At the beginning of its 2017 tax year, Hiram owned the following business assets: On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $589,000;...
-
At the beginning of its 2018 tax year, Hiram owned the following business assets. On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $589,000;...
-
At the beginning of its 2016 tax year, Hiram owned the following business assets: On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $589,000;...
-
Bhushan Building Supplies entered into the following transactions. Prepare journal entries under the perpetual inventory system. June 1 Purchased merchandise on account from Brij Builders Materials,...
-
A sleigh and driver with a total mass of 120 kg are pulled up a hill with a incline by a horse, as illustrated in Fig. 5.36. (a) If the overall retarding frictional force is 950 N and the sled moves...
-
Draw the free-body diagram of member AB, which is supported by a roller at A and a pin at B. Explain the significance of each force on the diagram. (SeeFig) 390 Ib 800 Ib ft -4 8 ft t- 3 ft 30
-
Assume that the multiplier has a value of 3. Now assume that the government decides to increase aggregate demand in an attempt to reduce unemployment. It raises government expenditure by 100 million...
-
The following yields on U.S. Treasury securities were taken from a recent financial publication: a. Plot a yield curve based on these data.b. What type of yield curve is shown?c. What information...
-
The Basel Committee on Banking supervision was established to make the banking sector strong enough to withstand economic and financial stress though stringent regulations. In view of this statement,...
-
An experiment consists of tossing five balanced dice. Find the following probabilities. a. P(x = 1) b. P(x = 6)
-
Loni Company paid $527,000 for tangible personality in 2013 and elected to expense $500,000 of the cost (the limited dollar amount for 2013). Lonis taxable income before a Section 179 deduction was...
-
In April 2014, Lenape Corporation acquired new business machinery with a total cost of $775,000. Assuming the machinery qualifies for both the Section 179 deduction and bonus depreciation, calculate...
-
The financial statements of Limited Brands, Inc. , include the following selected data ($ in millions): sales, $9,043; net income, $220; beginning stockholders' equity, $2,219; and ending...
-
A manufacturer uses a new production method to produce steel rods. A random sample of 17 steel rods resulted in lengths with a standard deviation of 4.7 cm. At the 0.10 significance level, test the...
-
Review the information below: Cash balance per bank statement $9,525 Cash balance per books $10,094 NSF check $245 Service charge $35 Outstanding checks $1,382 Collection of notes receivable $884...
-
Why is the United States more violent than many other industrial nations? Explain
-
Write trigger which is called trigcom which is activated when an INSERT or UPDATE takes place against the SALARY table. The trigger will check two compensation items: (a) Ensure that the COMMISSION...
-
Identify key characteristics of community-based action planning and discuss how this approach could enhance community health initiatives. Justify the benefits of the Healthy Cities and Communities...
-
Proof that If G is a nontrivial group that is not cyclic of order 2, then G has a nonidentity automorphism.
-
Calculate the electrical conductivity of a fiber-reinforced polyethylene part that is reinforced with 20 vol % of continuous, aligned nickel fibers.
-
An individual taxpayer sells some used assets at a garage sale. Why are none of the proceeds taxable in most situations?
-
Mac, an inventor, obtained a patent on a chemical process to clean old aluminum siding so that it can be easily repainted. Mac has a $50,000 tax basis in the patent. Mac does not have the capital to...
-
Mac, an inventor, obtained a patent on a chemical process to clean old aluminum siding so that it can be easily repainted. Mac has a $50,000 tax basis in the patent. Mac does not have the capital to...
-
Define f : N^2 Z by f(x, y) = y x for all (x, y) N^2 . (a) Show that f is surjective. (b) Let S = {(x, y) N^2 : y = 2x 1}. Prove that f|S : S Z is injective
-
A About 20% of items, account for 80% of dollar usage B About 30% of items, account for 15% of dollar usage C About 50% of items, account for 5% of dollar usage Steps in making an ABC Analysis...
-
Consider the Cauchy problem for the equation of heat on the real line. UtuxxxER, t>0 u(x, 0) = (x), R Find the soluion when (x)= 1, x 1 10, x 1 Solve by the method of separation of variables please,...
Study smarter with the SolutionInn App