Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) On July 8, 2020, Holly purchased a residential apartment
Question:
Modified Accelerated Cost Recovery System (MACRS) (LO 8.2)
On July 8, 2020, Holly purchased a residential apartment building. The cost basis assigned to the building is $750,000. Holly also owns another residential apartment building that she purchased on November 15, 2020, with a cost basis of $410,000.
Click here to access the depreciation tables.
Round your answers to the nearest dollar.
a. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS.
$___________________
b. Calculate Holly's total depreciation deduction for the apartments for 2021 using MACRS.
$____________________
Problem 8-4(Algorithmic)
Modified Accelerated Cost Recovery System (MACRS) (LO 8.2)
On September 14, 2020, Jay purchased a passenger automobile that is used 75 percent in his business. The automobile has a basis for depreciation purposes of $45,000, and Jay uses the accelerated method under MACRS. Jay does not elect to expense under section 179.
Click here to access the depreciation table and click here to access the annual automobile depreciation limitations.
Calculate Jay's depreciation deduction for 2020 assuming bonus depreciation.
$_____________
HERE ARE THE TABLES
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill