Question content area top

Part $1$

In

$20242024,$

WernerWerner

Corporation purchases and places into service a machine.

WernerWerner

elects Sec. $179$ expensing for

$ $1\mathrm{.}22$$$1\mathrm{.}22$

million of its

$ $1\mathrm{.}72$$$1\mathrm{.}72$

million cost. The machine has a$7-$year MACRS recovery period. Assume the$$ half$-$year convention applies and that

WernerWerner$\text{'}$s

taxable income$($before deducting Sec. $179$ expensing$)$ exceeds such expensing.

View the MACRS half$-$year convention rates.

LOADING...

Read the requirements.

LOADING...

Question content area bottom

Part $1$

Requirement a$.$ What is

Werner'sWerner's

total depreciation deduction for the machine for each year of its recovery period if it elects out of bonus depreciation for

$20242024?$

$($Enter amounts in whole number. Use MACRS rates to two decimal$$ places, X$.$XX$\%.$ Round the MACRS depreciation to the nearest dollar. Complete all input fields. Enter a$"0"$ for any zero$$ amounts.$)$

$$

Sec. $179$ expense

$+$

Bonus depreciation

$+$

MACRS depreciation

$=$

Total depreciation

$2024$

$$

$+$

$$

$+$

$$

$=$

$$

Help me solve thisCalculatorAsk my instructor

Clear all

Check answer

pop$-$up content starts

MACRS Half$-$year Convention Rates

General Depreciation

Systemlong dash$$MACRS

Personal Property Placed in Service After$12/31/86$

Applicable$$ Convention: Half$-$Year

Applicable Depreciation$$ Method: $200$ or $150$ Percent Declining Balance Switching to Straight Line

Recovery period and Depreciation Rates

Recovery Year

$3-$Year

$5-$Year

$7-$Year

$10-$Year

$15-$Year

$20-$Year

Year $1$

$33\mathrm{.}33$

$20\mathrm{.}00$

$14\mathrm{.}29$

$10\mathrm{.}00$

$5\mathrm{.}00$

$3\mathrm{.}750$

Year $2$

$44\mathrm{.}45$

$32\mathrm{.}00$

$24\mathrm{.}49$

$18\mathrm{.}00$

$9\mathrm{.}50$

$7\mathrm{.}219$

Year $3$

$14\mathrm{.}81$

$19\mathrm{.}20$

$17\mathrm{.}49$

$14\mathrm{.}40$

$8\mathrm{.}55$

$6\mathrm{.}677$

Year $4$

$7\mathrm{.}41$

$11\mathrm{.}52$

$12\mathrm{.}49$

$11\mathrm{.}52$

$7\mathrm{.}70$

$6\mathrm{.}177$

Year $5$

$11\mathrm{.}52$

$8\mathrm{.}93$

$9\mathrm{.}22$

$6\mathrm{.}93$

$5\mathrm{.}713$

Year $6$

$5\mathrm{.}76$

$8\mathrm{.}92$

$7\mathrm{.}37$

$6\mathrm{.}23$

$5\mathrm{.}285$

Year $7$

$8\mathrm{.}93$

$6\mathrm{.}55$

$5\mathrm{.}90$

$4\mathrm{.}888$

Year $8$

$4\mathrm{.}46$

$6\mathrm{.}55$

$5\mathrm{.}90$

$4\mathrm{.}522$

Year $9$

$6\mathrm{.}56$

$5\mathrm{.}91$

$4\mathrm{.}462$

Year $10$

$6\mathrm{.}55$

$5\mathrm{.}90$

$4\mathrm{.}461$

Year $11$

$3\mathrm{.}28$

$5\mathrm{.}91$

$4\mathrm{.}462$

Year $12$

$5\mathrm{.}90$

$4\mathrm{.}461$

Year $13$

$5\mathrm{.}91$

$4\mathrm{.}462$

Year $14$

$5\mathrm{.}90$

$4\mathrm{.}461$

Year $15$

$5\mathrm{.}91$

$4\mathrm{.}462$

Year $16$

$2\mathrm{.}95$

$4\mathrm{.}461$

Year $17$

$4\mathrm{.}462$

Year $18$

$4\mathrm{.}461$

Year $19$

$4\mathrm{.}462$

Year $20$

$4\mathrm{.}461$

Year $21$

$2\mathrm{.}231$

pop$-$up content ends

PrintDone

pop$-$up content starts

Requirements

What is

Werner'sWerner's

total depreciation deduction for the machine for each year of its recovery period if it elects out of bonus depreciation for

$20242024?$

How would your answer to Part a change if

WernerWerner

does not elect out of bonus depreciation for

$20242024?$

How would your answers to Part a and b change if

WernerWerner

sells the machine for

$ $400$ comma $000$$$400,000$

on January$31,$

$20262026?$

What is its gain or loss on