A calendar-year taxpayer acquired four new machines in 2019 on the dates shown below. Section 179...

 

Transcribed Image Text:

A calendar-year taxpayer acquired four new machines in 2019 on the dates shown below. Section 179 is not elected, but regular MACRS is used to depreciate the machines. The machines have a recovery period of 7 years. The taxpayer elects out of taking bonus depreciation. February 1 April 1 October 1 December 1 $50,000 70,000 60,000 80,000 00 a. Compute total MACRS depreciation expense for 2019 that would be reported on Schedule C, using the appropriate averaging convention. b. Same as in Part a., except that the third machine was acquired on September 30 (instead of October 1). Comment on the significance of the difference between this amount and your answer to Part a. A calendar-year taxpayer acquired four new machines in 2019 on the dates shown below. Section 179 is not elected, but regular MACRS is used to depreciate the machines. The machines have a recovery period of 7 years. The taxpayer elects out of taking bonus depreciation. February 1 April 1 October 1 December 1 $50,000 70,000 60,000 80,000 00 a. Compute total MACRS depreciation expense for 2019 that would be reported on Schedule C, using the appropriate averaging convention. b. Same as in Part a., except that the third machine was acquired on September 30 (instead of October 1). Comment on the significance of the difference between this amount and your answer to Part a.

Answer rating: 100% (QA)

a Depreciation Purchased cost salvage value Life of asset Life of the machine1 is 7 years and salvag... View the full answer