Red and Black Corporation has been growing over the last several years and purchased the following...

 

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Red and Black Corporation has been growing over the last several years and purchased the following assets in 2019: Recovery Period 5 yr 7 yr Cont Date $10,000 2/10/2015 computer Office Equipment Furniture $15,000 11/15/2019 7yT $7,500 5/5/2019 Bed and Black did not elect to take any immediate expensing (Sec. 179 or bonus depreciation) in 2019. During 2021, Red and Black purchased and placed into service the following assets: Recovery Period Asset Machinery Equipment Computer Qualified Improvement Property Office Building Land 7 yr 7 yr 5 yr 39 yr 39 yr Cost $325,000 $575,000 $2,500 $1,500,000 $1,550,000 $75,000 Date 1/1/2021 1/15/2021 3/26/2021 1/21/2021 4/5/2021 4/5/2021 Additionally in October of 2021, Red and Black sold a warehouse. The warehouse had been purchased in July of 2008 and had a cost basis of $150,000 These are all of the company's depreciable assets. The company would like to maximize the 2021 depreciation expense. Assume net business income before the Sec 179 deduction is $3,200,000 What is the company's 2021 total depreciation expense? Attache Red and Black Corporation has been growing over the last several years and purchased the following assets in 2019: Recovery Period 5 yr 7 yr Cont Date $10,000 2/10/2015 computer Office Equipment Furniture $15,000 11/15/2019 7yT $7,500 5/5/2019 Bed and Black did not elect to take any immediate expensing (Sec. 179 or bonus depreciation) in 2019. During 2021, Red and Black purchased and placed into service the following assets: Recovery Period Asset Machinery Equipment Computer Qualified Improvement Property Office Building Land 7 yr 7 yr 5 yr 39 yr 39 yr Cost $325,000 $575,000 $2,500 $1,500,000 $1,550,000 $75,000 Date 1/1/2021 1/15/2021 3/26/2021 1/21/2021 4/5/2021 4/5/2021 Additionally in October of 2021, Red and Black sold a warehouse. The warehouse had been purchased in July of 2008 and had a cost basis of $150,000 These are all of the company's depreciable assets. The company would like to maximize the 2021 depreciation expense. Assume net business income before the Sec 179 deduction is $3,200,000 What is the company's 2021 total depreciation expense? Attache

Answer rating: 100% (QA)

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