Question: 1 / On June 1 7 , 2 0 2 3 , Travis purchased a passenger automobile at a cost of $ 5 8 ,

1/ On June 17,2023, Travis purchased a passenger automobile at a cost of $58,000. The automobile is used 90 percent for qualified business use and 10 percent for personal purposes. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. Calculate the depreciation expense (with bonus depreciation) for the automobile for 2023,2024, and 2025, assuming half-year convention and no Section 179 immediate expensing for 2023,2024,2025?
2/ On June 15,2023, Chang purchases $2,937,000 of equipment (seven-year property) for use in their business. It is their only purchase of business property in 2023. Chang has taxable income from their business of $2.5 million before any cost recovery.
Click here to access depreciation Table 8-2.(If required, round your answers to the nearest dollar.)
a. Assuming Chang does not elect Section 179 and elects out of bonus depreciation, what is their total 2023 cost recovery?
b. Assuming Chang elects the maximum Section 179 deduction allowable and elects out of bonus depreciation, what is their total 2023 cost recovery?
c. Assuming Chang elects the maximum Section 179 deduction allowable and does not elect out of bonus depreciation, what is their total 2023 cost recovery?

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