File Home Insert Draw Page Layout Formulas Data Review View Help 11 AA == General 2 Paste Clipboard Calibri BIU AN Font 3 E Alignment 5 $%98-08 Conditiona Formatting Number Learn More SECURITY RISK Microsoft has blocked macros from running because the source of this file is untrusted, G2 X fx A C D Module 2 Homework Your Score 4 Based on problem #69 in your textbook. It has been personalized for you. Some of the requirements have been altered from those that appear in the textbook including the requirement to prepare a Form 4562 as instructed below 5 6 Burbank Corporation (calendar-year end) acquired the following property this year. 7 Date Place in Asset Basis B Service 9 Used Copier $ 7,600 11/12/2021 10 New computer equipment 12,400 6/6/2021 11 Furniture 21,900 7/15/2021 12 New delivery truck 13 Luxury auto 23,000 86,400 10/28/2021 1/31/2021 14 15 16 17 18 "Burbank acquired the copier in a tax-deferred transaction when the shareholder contribuld the copier to the business in exchange for stock Required a) Assuming no bonus of $179 expense, what is Burbank's maximum cost recovery for this year? 19 Anet Cost 20 Depreciation Deduction 21 Used Copier $ 7,600 221 New computer equipment 12,400 23 Furniture 21,900 24 New delivery truck 23,000 25 Luxury auto 86,400 26 Totals 151.300 27 28 29 b) Compute the maximum 2021 depreciation deductions including $179 expense (ignoring bonus depreciation). Burbank's taxable income in 2021 for purposes of computing the $179 expense limitation is 40,110 30 Description Cost Sec. 179 Expense 31 Total MACRS Basis MACRS Depreciation Depreciation Deduction Current 32 Used Copier 7,600 33 New computer equipment 12,400 34 Furniture 21,900 35 New delivery truck 23,000 36 Luxury auto 86,400 37 Totals 151,300 38 39 40 c) Compute the maximum 2021 depreciation deductions including $179 expense, but now assume that Burbank would like to take bonus depreciation. Sec. 179 Description Cost MACRS Basis Expense 41 Current MACRS Depreciation Total Depreciation Deduction 42 Used Copier S 7,600 43 New computer equipment 12,400 44 Furniture 21,900 45 New delivery truck 23,000 46 Luxury auto 86,400 47 Totals 151,300 481 49 50 e) Complete Form 4562 using the information for part b. The luxury auto is used 100% for business and was driven 15,000 miles