In 2019, Jessica bought a new heavy truck for $38,000 to use 80% for her sole...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In 2019, Jessica bought a new heavy truck for $38,000 to use 80% for her sole proprietorship. Total miles driven include 8,600 in 2019, 9,600 in 2020, and 9,100 in 2021. (Use Table 6A-1) Required: a. If Jessica uses the standard mileage method, how much may she deduct on her 2021 tax return (miles were incurred ratably throughout the year)? b. What is the deduction for 2021 assuming the actual method was used from the beginning? Calculate depreciation only; the truck is not limited by the luxury auto rules. Also, assume §179 was not elected in the year of purchase. Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. J Deduction ← Chrome File Edit View → C * My Courses X TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Recovery Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 History Bookmarks Profiles Tab Window Help ezt.prod.mheducation.com/Media/Connect_Production/bne/cruz15e/Table6A_1.htm ♫ 9 tv Mail - Baus, X D2L 6-2 Activity: X M Question 4 X 3-Year 33.33 44.45 14.81 7.41 A JUL 4 Half-Year Convention 7-Year 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 15 5-Year 20.00 32.00 19.20 11.52 11.52 5.76 16 17 18 19 20 21 May not be used for farm business property generally placed in service after 1988. See Table 14, Rev. Proc. 87-57, 1987-2 CB 687. https://ezt.p x 10-Year 10.00 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 O 15-Year 5.00 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 1 https://ezt.p X 20-Year 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 Mc Graw Hill A Simple Inc X Sat Jul 15 9:22 PM n 2015, Jess X T Update: In 2019, Jessica bought a new heavy truck for $38,000 to use 80% for her sole proprietorship. Total miles driven include 8,600 in 2019, 9,600 in 2020, and 9,100 in 2021. (Use Table 6A-1) Required: a. If Jessica uses the standard mileage method, how much may she deduct on her 2021 tax return (miles were incurred ratably throughout the year)? b. What is the deduction for 2021 assuming the actual method was used from the beginning? Calculate depreciation only; the truck is not limited by the luxury auto rules. Also, assume §179 was not elected in the year of purchase. Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. J Deduction ← Chrome File Edit View → C * My Courses X TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line* Recovery Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 History Bookmarks Profiles Tab Window Help ezt.prod.mheducation.com/Media/Connect_Production/bne/cruz15e/Table6A_1.htm ♫ 9 tv Mail - Baus, X D2L 6-2 Activity: X M Question 4 X 3-Year 33.33 44.45 14.81 7.41 A JUL 4 Half-Year Convention 7-Year 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 15 5-Year 20.00 32.00 19.20 11.52 11.52 5.76 16 17 18 19 20 21 May not be used for farm business property generally placed in service after 1988. See Table 14, Rev. Proc. 87-57, 1987-2 CB 687. https://ezt.p x 10-Year 10.00 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 O 15-Year 5.00 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 1 https://ezt.p X 20-Year 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 Mc Graw Hill A Simple Inc X Sat Jul 15 9:22 PM n 2015, Jess X T Update:
Expert Answer:
Answer rating: 100% (QA)
SOLUTION a If Jessica uses the standard mileage method she may deduct the cost of operating the truck using the standard mileage rate which was 56 cents per mile for 2021 To calculate the deduction we ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
In 2014 Jessica bought a new heavy truck for $45,000 to use 80% for her sole proprietorship. Total miles driven include 12,000 in 2014, 14,500 in 2015, and 13,000 in 2016. a. If Jessica uses the...
-
In 2013 Jessica bought a new heavy truck for $45,000 to use 80% for her sole proprietorship. Total miles driven include 12,000 in 2013, 14,500 in 2014, and 13,000 in 2015. a. If Jessica uses the...
-
In 2016, Jessica bought a new heavy truck for $37,000 to use 80% for her sole proprietorship. Total miles driven include 8,400 in 2016, 9,400 in 2017, and 8,900 in 2018. (Use Table 6A-1 and Table...
-
Using Figure 7-5 as an example, redraw Figure 7-12 using an enterprise information system that processes a shared database. Explain the advantages of this system over the paper-based system in Figure...
-
Multinational transfer pricing, effect of alternative transfer-pricing methods, global income tax minimization. Tech Friendly Computer, Inc., with headquarters in San Francisco, manufactures and...
-
Builders Inc. purchased 40 percent of the stock of Stairways Inc. for cash and acquired the remaining 60 percent for its own voting stock pursuant to a single plan. As soon as practicable, Stairways...
-
Plaintiff visited South Chicago on January 10, 2008, seeking a new 2008 Nissan Versa (Versa) with manual transmission, anti-lock brakes, and other features. He was told by the employees of South...
-
Jamison Kovach Supply Company manufactures paper clips and other office products. Although inexpensive, paper clips have provided the firm with a high margin of profitability. Sample size is 200....
-
The Williamson Corporation wants to help its employees save for retirement by allowing them to defer part of their compensation on a pretax basis that the company would match. The best option for...
-
Willow has a salary of $30,000 and experienced the following: Loss from theft of securities $(5,000) Personal casualty gain 4,000 Personal casualty loss (3,000) The amount of Willow's deduction from...
-
In 2020, Ralph transferred several assets by gift to different persons. Ralph dies in 2022. Information regarding the properties given is summarized below. DateofGift DateofDeath...
-
Compare and contrast individualistic and collectivistic cultures. Explain your interpretation of what an individualistic culture is. Explain your interpretation of what a collectivist culture is. Do...
-
Find the domain of the function. 72 f(x) = x -9x-22 What is the domain of f? (Type your answer in interval notation.)
-
The Central Bank of Nigeria (CBN) has introduced a new policy on cash-based transactions which stipulates a cash handling charge on daily cash withdrawals that exceed N500,000 for Individuals and...
-
When it comes to credit history which statement is right. Your credit history is reported every 60 days. Any unpaid bills, late payments and bad debt write offs remain for 7 years and then disappear....
-
How do postmodern discourses on identity challenge traditional essentialist notions, and what implications do these challenges have for understanding the fluidity and multiplicity of individual and...
-
You are conducting a retrospective analysis using Newsvendor model. The price for the product is $45 and the procurement cost is $18 (no disposal cost or salvage value). The demands for the past four...
-
Do animals have rights? If so, what are they? What duties do human beings have toward animals? Does KFC protect animal welfare at an acceptable level?
-
Carl Conch and Mary Duval are married and file a joint return. They live at 1234 Mallory Sq. Apt. 64, Key West, FL 33040. Carl works for the Key Lime Pie Company and Mary is a homemaker after losing...
-
In 2012, Margaret and John Murphy are married taxpayers who file a joint tax return with AGl of $25,000. During the year they incurred the following expenses: Hospitalization insurance...
-
Janie graduates from high school in 2012 and enrolls in college in the fall. Her parents pay $4,000 for her tuition and fees. a. Assuming Janie's parents have AGI of $170,000, what is the American...
-
Might it be desirable to use a combination of team-based and individual incentives at Lakeside Utility Company? How might such a plan be structured? Lakeside Utility Company provides electrical power...
-
Students form pairs. One student takes the role of Pamela Johnson; the other, the role of an HRM consultant Johnson has hired to help her decide what to do next. Role-play the meeting between the...
-
This experiential exercise involves a group of six students. One will be a manager and five will be part of a team that has worked closely together during the past year. A bonus of $12,000 is to be...
Study smarter with the SolutionInn App