In 2020, Bizarro Corp , a calendar year corporation, acquired and placed in service the assets listed below Asset Placed in Service Cost Recovery Period Computer 8 21 2020 1,050,000 5 years Machine 10 12 2020 1,000,000 7 years Warehouse 12 2 2020 2,000,000 39 years Assume (1) no bonus depreciation,...

Asset Placed in service 08212020 Computer Machine 10122020 warehous ...

In 2020, Bizarro Corp., a calendar year corporation, acquired and placed in service the assets listed below.

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In 2020, Bizarro Corp., a calendar year corporation, acquired and placed in service the assets listed below.

Asset	Placed in Service	Cost	Recovery Period
Computer	8/21/2020	1,050,000	5 years
Machine	10/12/2020	1,000,000	7 years
Warehouse	12/2/2020	2,000,000	39 years

Assume (1) no bonus depreciation, (2) no Section 179 expense for question.

1a. What convention is used to depreciate each asset and why?

1b. What is the total depreciation expense Bizarro Corp. may deduct in 2020?

Related Book For answer-question

Principles of Taxation for Business and Investment Planning 2016 Edition

ISBN: 9781259549250

19th edition

Authors: Sally Jones, Shelley Rhoades Catanach

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Posted Date: Jun 03, 2022 05:39 AM

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In 2020, Bizarro Corp., a calendar year corporation, acquired and placed in service the assets listed below.

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