Explain how to calculate depreciation for a 1065- line 16A?/ 1120 line 20- they are the same for this homework-but missed them both. I am given sale of equipment and the values associated with it include: selling price, original purchase price, total book depreciation on equipment, and total tax depreciation on equip. They use MACRES for tax purposes. and it is all purchased July 1 2017. the company took max amount of section 179 depreciation-no bonus depreciation. and all the equipment is 7 year property. I am also given the cost of the equipment. Also given an unadjusted balance for accumulated depreciation that must be adjusted for the line on tax return, as well as depreciation expense, gain from disposition of fixed assets, . Can someone please explain how I would use these numbers to find the depreciation for line 20 on 1120 tax return for 2019? OR summarize how to go about finding this number considering they use MACRES for tax purposes, with all equip purchased July 1 2017 and that the company took max amount of section 179 with no bonus dep on 7 year property? 

I do not want to violate rules by posting numbers. can someone just explain what portions I would use to solve this question-I don't need numbers just a how to summary tax

Answer rating: 100% (QA)

To calculate the depreciation for the 1065 line 16A or 1120 line 20 you will need the following info... View the full answer