Question: Woolard Inc. has taxable income in 2014 of $150,000 before any depreciation deductions (Section 179, bonus,
Question:
Question:
Woolard Inc. has taxable income in 2014 of $150,000 before any depreciation deductions (Section 179, bonus, or MACRS) and acquired the following assets during the year: (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
Asset | Placed in Service | Basis |
Office furniture (used) | March 20 | $545,000 |
a. If Woolard elects $50,000 of Section 179, what is Woolard's total depreciation deduction for the year?
Woolard's total depreciation | $ |
b. If Woolard elects the maximum amount of Section 179 for the year, what is the amount of deductible $179 expense for the year? What is the total depreciation expense that Woolard may deduct in 2014?
Deductible Section 179 expense | $ |
Total depreciation expense |
c. Woolard is concerned about future limitations on its Section 179 expense. How much $179 expense should Woolard expense this year if it wants to maximize its depreciation this year and avoid any carryover to future years?
Section 179 expense | $ |
Essentials of Federal Taxation 2019
ISBN: 9781260190045
10th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver