What is the 2020 cost recovery deduction for Philosophical Consulting, Inc? John Rawls owns and operates Philosophical
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
John Rawls owns and operates Philosophical Consulting, Inc. During 2019 and 2020 he made the following purchases of assets for use in the business: Asset Cost Office Furniture Date of Purchase 5/1/2019 9/15/2020 $100,000 $400,000 Computer System In addition, his business income before any cost recovery deduction in 2020 is $350,000. Prior to 2020, he always elected to recover 50% of the cost of the asset through the section 179 deduction. However, starting in 2020 he decides to take the maximum deduction possible for all new purchases. Ignore any excess business or net operating loss limitations. John Rawls owns and operates Philosophical Consulting, Inc. During 2019 and 2020 he made the following purchases of assets for use in the business: Asset Cost Office Furniture Date of Purchase 5/1/2019 9/15/2020 $100,000 $400,000 Computer System In addition, his business income before any cost recovery deduction in 2020 is $350,000. Prior to 2020, he always elected to recover 50% of the cost of the asset through the section 179 deduction. However, starting in 2020 he decides to take the maximum deduction possible for all new purchases. Ignore any excess business or net operating loss limitations.
Expert Answer:
Answer rating: 100% (QA)
The modified accelerated cost recovery system MACRS ... View the full answer
Related Book For
Accounting
ISBN: 978-0176509743
Volume 1, 2nd canadian Edition
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
Posted Date:
Students also viewed these accounting questions
-
cost structure for global shippers inc : a. what is the break even point in terms of volume for options A , options B
-
You want $100,000 college fund in 15 years. How much will you have to deposit now under the scenario below. Assume that you make no deposits into the account after the initial deposit. An APR of 4.4%...
-
What is a service recovery paradox? What should managers learn from the service recovery paradox?
-
The stockholders' equity accounts of Marya Corporation on January 1, 2014, were as follows. Preferred Stock (9%, $100 par, cumulative, 5,000 shares authorized) ...$300,000 Common Stock ($3 stated...
-
Selected transactions completed by Primo Discount Corporation during the current fiscal year are as follows: Jan. 9. Split the common stock 3 for 1 and reduced the par from $75 to $25 per share....
-
Write the tangent line approximation for the numerators and denominators of the following functions and show that the result of applying L'Hopital's rule matches that of comparing the linear...
-
Do larger butterflies live longer? The wingspan (in millimeters) and the lifespan in the adult state (in days) were measured for 22 species of butterfly. Following are the results. a. Compute the...
-
Preston Media Corporation had the following income statement and balance sheet for 2018: Requirements 1. Compute the acquisition of plant assets for Preston Media Corporation during 2018. The...
-
17. What conditions must be true for C in the equation x + Cy = 36 for an ellipse to have a vertical major axis? 17. 1 mark 18. What conditions must be true for Ax + Cy + Dx + Ey = 0, so that the...
-
Two charges +q and 3q are separated by a small distance. Draw the electric field lines for this system.
-
The entry to establish a petty cash fund includes: a debit to Cash and a credit to Petty Cash. a debit to Cash and a credit to Cash Over and Short. a debit to Petty Cash and a credit to Cash. a debit...
-
Intangible assets with finite useful lives mostly differ from intangible assets with infinite useful lives with respect to accounting treatment of: A. revaluation. B. impairment. C. amortization.
-
Inventory cost is least likely to include: A. production-related storage costs. B. costs incurred as a result of normal waste of materials. C. transportation costs of shipping inventory to customers.
-
Carey Company adheres to U.S. GAAP, whereas Jonathan Company adheres to IFRS. It is least likely that: A. Carey has reversed an inventory write-down. B. Jonathan has reversed an inventory write-down....
-
Carrying inventory at a value above its historical cost would most likely be permitted if: A. the inventory was held by a producer of agricultural products. B. financial statements were prepared...
-
Investment property is most likely to: A. earn rent. B. be held for resale. C. be used in the production of goods and services.
-
Do you agree or not? Price elasticity of demand measures how greatly a change in demand affects a price change.
-
The graph of the sequence whose general term is an = n - 1 is which of the following? [8.1] A. B. TITTT 3-2-1 23.45 2.3.4
-
The following selected transactions were completed by Cold Company during February of the current year. Cold Company uses the periodic inventory system. Feb. 2. Purchased $17,500 of merchandise on...
-
Pitt Co., a furniture wholesaler using the perpetual method to record inventory, sells merchandise to Jeevan Co. on account, $25,600, terms 2/10, n/30. The cost of the goods sold is $14,000. Pitt Co....
-
The following selected transactions were completed by Marcel Co. during November of the current year, using the perpetual inventory system. Nov. 13. Purchased merchandise from Folts Co., $8,000,...
-
Find the free-vibration response of the spring-mass system shown in Fig. 6.6 (a) for \(k_{1}=k, k_{2}=2 k, k_{3}=3 k, m_{1}=m, m_{2}=2 m\), and \(m_{3}=3 m\) corresponding to the initial conditions...
-
Find the free-vibration response of the tightly stretched string shown in Fig. 6.33 for \(m_{1}=2 m, m_{2}=m, m_{3}=3 m\), and \(l_{i}=l(i=1,2,3,4)\). Assume the initial conditions as...
-
Find the free-vibration response of the triple pendulum shown in Fig. 6.10 for \(l_{i}=l(i=1,2,3)\) and \(m_{i}=m(i=1,2,3)\) for the initial conditions \(\theta_{1}(0)=\theta_{2}(0)=0\),...
Study smarter with the SolutionInn App