Small Corporation purchased and placed in service the following 100% business-use assets (all of the assets were
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• Truck (light-duty, modified non-personal use) costing $20,000: Placed in service on February 15, Year 1 with a 5-year MACRS recovery period.
• Machinery costing $50,000: Placed in service on May 1, Year 1 with a 7-year MACRS recovery period.
• Land costing $60,000: Placed in service on July 1, Year 1.
• Building costing $100,000: Placed in service on December 1, Year 1 with a 39-year MACRS recovery period.
• Equipment costing $40,000: Acquired on December 24, Year 1 and placed in service on January 5, Year 2 with a 5-year MACRS recovery period.
What are Small’s total depreciation deductions in Year 1 and Year 2?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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