Question: How would this information go on form 4562? (using more than 1) starting the motorcycle repair business. Shannon started her new business on 11/1/2019. During

How would this information go on form 4562? (using more than 1)

How would this information go on form 4562? (using more than 1)

starting the motorcycle repair business. Shannon started her new business on 11/1/2019. During 2020, she received cash payments totaling $69,000 from customers, and paid the following expenditures in connection with her business: Cost of an engine diagnostic machine (5-year property) $ 20,000 Cost of new equipment (7-year property) 14,000 Cost of new tools (5-year property) 6,000 Supplies 3,000 Advertising fees 2,900 Liability insurance premiums 2,500 For the diagnostic machine, Shannon elected not to expense any portion of the cost allowed under the provisions of $ 179, but rather elected to take the maximum allowed depreciation. For the new equipment, Shannon elected to take the maximum $ 179 expense allowed. For the new tools, Shannon elected to take MACRS depreciation rather than either $ 179 expense or additional first- year (bonus) depreciation. The diagnostic machine, plus the new equipment, were placed into service on 2/1/2020. The new tools were placed into service on 1/1/2020. The diagnostic machine, equipment, and tools are used exclusively for business purposes

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!