Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore 179 expense and bonus...
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Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.) Asset Machinery Computer equipment Used delivery truck* Furniture Date Placed in Service October 25 February 31 August 17 April 22 Original Basis MACRS depreciation $ 120,000 47,500 60,500 212,500 *The delivery truck is not a luxury automobile. a. What is the allowable MACRS depreciation on Evergreen's property in the current year. assuming Evergreen does not elect §179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.) ! Required information [The following information applies to the questions displayed below.) Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.) Asset Machinery Computer equipment Used delivery truck* Furniture Date Placed in Service October 25 February 3 August 17 April 22 Original Basis $ 120,000 47,500 60,500 212,500 *The delivery truck is not a luxury automobile. MACRS depreciation b. What is the allowable MACRS depreciation on Evergreen's property in the current year if Evergreen does not elect out of bonus depreciation? Table 1 MACRS Half-Year Convention Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 3-Year 33.33% 44.45 14.81 7.41 Depreciation Rate for Recovery Period 5-Year 7-Year 10-Year 15-Year 20-Year 20.00% 14.29% 10.00% 5.00% 3.750% 32.00 24.49 18.00 9.50 7.219 19.20 17.49 14.40 8.55 6.677 11.52 12.49 11.52 7.70 6.177 11.52 8.93 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285 8.93 6.55 5.90 4.888 4.46 6.55 5.90 4.522 6.56 5.91 4.462 6.55 5.90 4.461 3.28 5.91 4.462 5.90 4.461 5.91 4.462 5.90 4.461 5.91 4.462 2.95 4.461 4.462 4.461 4.462 4.461 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year 35.00% 25.00% 26.00 21.43 15.60 15.31 11.01 10.93 11.01 8.75 1.38 8.74 8.75 1.09 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year 25.00% 17.85% 30.00 23.47 18.00 16.76 11.37 11.97 11.37 8.87 4.26 8.87 8.87 3.34 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 15.00% 34.00 20.40 12.24 11.30 7.06 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Year 1 Year 2 Year 3 Year 4 Year 5 Depreciation Rate for Recovery Period 5-Year 7-Year Year 6 Year 7 Year 8 10.71% 25.51 18.22 13.02 9.30 8.85 8.86 5.53 5.00% 38.00 22.80 13.68 10.94 9.58 3.57% 27.55 19.68 14.06 10.04 8.73 8.73 7.64 Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.) Asset Machinery Computer equipment Used delivery truck* Furniture Date Placed in Service October 25 February 31 August 17 April 22 Original Basis MACRS depreciation $ 120,000 47,500 60,500 212,500 *The delivery truck is not a luxury automobile. a. What is the allowable MACRS depreciation on Evergreen's property in the current year. assuming Evergreen does not elect §179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.) ! Required information [The following information applies to the questions displayed below.) Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.) Asset Machinery Computer equipment Used delivery truck* Furniture Date Placed in Service October 25 February 3 August 17 April 22 Original Basis $ 120,000 47,500 60,500 212,500 *The delivery truck is not a luxury automobile. MACRS depreciation b. What is the allowable MACRS depreciation on Evergreen's property in the current year if Evergreen does not elect out of bonus depreciation? Table 1 MACRS Half-Year Convention Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 3-Year 33.33% 44.45 14.81 7.41 Depreciation Rate for Recovery Period 5-Year 7-Year 10-Year 15-Year 20-Year 20.00% 14.29% 10.00% 5.00% 3.750% 32.00 24.49 18.00 9.50 7.219 19.20 17.49 14.40 8.55 6.677 11.52 12.49 11.52 7.70 6.177 11.52 8.93 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285 8.93 6.55 5.90 4.888 4.46 6.55 5.90 4.522 6.56 5.91 4.462 6.55 5.90 4.461 3.28 5.91 4.462 5.90 4.461 5.91 4.462 5.90 4.461 5.91 4.462 2.95 4.461 4.462 4.461 4.462 4.461 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year 35.00% 25.00% 26.00 21.43 15.60 15.31 11.01 10.93 11.01 8.75 1.38 8.74 8.75 1.09 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year 25.00% 17.85% 30.00 23.47 18.00 16.76 11.37 11.97 11.37 8.87 4.26 8.87 8.87 3.34 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 15.00% 34.00 20.40 12.24 11.30 7.06 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Year 1 Year 2 Year 3 Year 4 Year 5 Depreciation Rate for Recovery Period 5-Year 7-Year Year 6 Year 7 Year 8 10.71% 25.51 18.22 13.02 9.30 8.85 8.86 5.53 5.00% 38.00 22.80 13.68 10.94 9.58 3.57% 27.55 19.68 14.06 10.04 8.73 8.73 7.64
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To calculate the allowable MACRS Modified Accelerated Cost Recovery System depreciation for Evergreen Corporations property in the current year we wil... View the full answer
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
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