A textile company purchased the following assets throughout 2020: Asset Placed in service Initial Basis Land for
Fantastic news! We've Found the answer you've been seeking!
Question:
A textile company purchased the following assets throughout 2020:
Asset | Placed in service | Initial Basis |
Land for mill | January 1 | $1,000,000 |
Mill building | January 1 | $300,000 |
Equipment (new) | March 4 | $1,800,000 |
Small used truck for deliveries | June 8 | $25,000 |
Total | $3,125,000 |
What is the maximum total depreciation expense possible that the corporation may deduct in 2020? Assume that the land and mill building do not qualify as qualified real property for Sec. 179 and that the company has sufficient taxable income that it creates no binding limitation on any potential Sec. 179 expense (if applicable).
Related Book For
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short
Posted Date: