Question: help me solve this please Walt purchased electronic equipment (five-year property) for $4,500. He could use the electronic equipment exclusively for his business, or he

help me solve this please

Walt purchased electronic equipment (five-year property) for $4,500. He could use the electronic equipment exclusively for his business, or he could allow his family to use the electronic equipment 60% of the time and 40% would be for business use. Assume that Walt would not elect $179 expensing or bonus and that he is in the 24% tax bracket. (Use Table 6A-1.) Required: a. Determine the tax deduction for the year of acquisition under both alternatives for the business use portion. b. What is the overall tax savings between the two alternatives? Note: Round your final answer to the nearest whole dollar. a. Tax deduction - Exclusive business use a. Tax deduction - 60% Personal and 40% Business b. Tax savings 5 ezto.mheducation.com/extMedi x + X C 2% ezto.mheducation.com/extMedia/bne/cruz17e/Table6A_1.htm Relaunch to update : 5 ecampus Home UWM Mortgage U Parent Portal Login |... Chat Al D Overview - Square... Graph Paper | Four... TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Recovery Year Half-Year Convention 3-Year 5-Year 7-Year 3.33 10-Year 10.00 15-Year 14.29 20-Year 14.45 10.00 $2.00 5.00 24.49 3.750 14.81 8.00 9.20 9.50 17.49 7.219 7.41 14.40 11.52 8.55 12.49 6.677 11.52 11.52 7.70 3.93 5.17 9.27 5.76 6.93 8.92 5.713 7.37 6.23 3.93 5.285 5.55 5.90 4.888 MEEFF SODAWN 4.46 5.55 5.90 4.522 5.56 5.91 4.46 .55 5.90 1.461 3.28 5.91 4.462 5.90 4.461 5.91 1.462 5.90 4.461 16 3.91 4.462 17 2.95 4.461 18 4.462 19 4.461 20 4.462 21 4.461 2.231 687. * May not be used for farm business property generally placed in service after 1989. See Table 14, Rev. Proc. 87-57, 1987-2 CB

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