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Problem 10-69 (LO 10-2, LO 10-3) (Algo)

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Burbank Corporation (calendar-year-end) acquired the following property this year: (Use MACRS Table 1, Table 2 and Exhibit 10-10.)

Asset	Placed in Service	Basis
Used copier	November 12	$	12,800
New computer equipment	June 6		19,000
Furniture	July 15		37,000
New delivery truck	October 28		24,000
Luxury auto	January 31		75,000
Total		$	167,800

Burbank acquired the copier in a tax-deferred transaction when the shareholder contributed the copier to the business in exchange for stock. (Round your answer to the nearest whole dollar amount.)

Problem 10-69 Part a (Algo)

a. Assuming no bonus or 179 expense, what is Burbanks maximum cost recovery deduction for this year?

b. Assuming Burbank would like to maximize its cost recovery deductions by claiming bonus and 179 expense, which assets should Burbank immediately expense? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

• Used Copierunanswered
• New Computer Equipmentunanswered
• Furnitureunanswered
• New Delivery Truckunanswered
• Luxury Auto

c. What is Burbanks maximum cost recovery deduction this year assuming it elects 179 expense and claims bonus depreciation?