5. Assume that Issa Corporation has sufficient taxable income for purposes of computing the 179 expense...
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5. Assume that Issa Corporation has sufficient taxable income for purposes of computing the 179 expense and acquired the following assets during 2022: Asset Computer Equipment Commercial Building Delivery Truck Machinery Total Placed in Service February 10 March 2 August 21 October 12 Cost Basis $70,000 $700,000 $30,000 $1,480,000 $2,280,000 Depreciable Life 5 years 7 years 5 years Issa wants to immediately expense the maximum allowed under $179 and then wants to elect to use 100% bonus depreciation on only its assets with a seven-year useful life (i.e., electing out of bonus for the five-year assets). Fill out the table on the next page to calculate the depreciation for each asset. Hint: Use the regular depreciation rates to determine for which asset/assets you should apply $179 expensing. (0.5 pts each asset, 2 pts total) Asset Remaining 100% Basis Remaining Basis Bonus Regular Depr. Rate Depr. Computer Equip. Commercial Bldg. Delivery Truck Machinery Original 179 Basis 70,000 700,000 30,000 1,480,000 Expens e Regular Depr. 5. Assume that Issa Corporation has sufficient taxable income for purposes of computing the 179 expense and acquired the following assets during 2022: Asset Computer Equipment Commercial Building Delivery Truck Machinery Total Placed in Service February 10 March 2 August 21 October 12 Cost Basis $70,000 $700,000 $30,000 $1,480,000 $2,280,000 Depreciable Life 5 years 7 years 5 years Issa wants to immediately expense the maximum allowed under $179 and then wants to elect to use 100% bonus depreciation on only its assets with a seven-year useful life (i.e., electing out of bonus for the five-year assets). Fill out the table on the next page to calculate the depreciation for each asset. Hint: Use the regular depreciation rates to determine for which asset/assets you should apply $179 expensing. (0.5 pts each asset, 2 pts total) Asset Remaining 100% Basis Remaining Basis Bonus Regular Depr. Rate Depr. Computer Equip. Commercial Bldg. Delivery Truck Machinery Original 179 Basis 70,000 700,000 30,000 1,480,000 Expens e Regular Depr.
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Related Book For
Taxation Of Individuals And Business Entities 2023 Edition
ISBN: 9781265790295
14th Edition
Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham
Posted Date:
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