Short Corporation acquired and placed in service the following100% business-use assets. Short did not claim Sec. 179
Question:
Short Corporation acquired and placed in service the following100% business-use assets. Short did not claim Sec. 179 or bonus depreciation expensing on any of these properties.
a. What is Short's total depreciation deduction in 2018? (Use MACRS rates to three decimal places, X.XXX%. Round all amounts to the nearest dollar. Complete all input fields. Enter a "0" if no depreciation is allowed.)
Asset | 2018 Depreciation |
Truck | |
machinery | |
land | |
building | |
total depreciation |
b. Short Corporation sells the machinery on February 2, 2020 and sells the building on September 18,2020. What are the adjusted bases of these two assets on the dates of sale (compute accumulated depreciation to date ofsale)? |
Truck (light-duty, modified non-personal use) costing$20,000: Placed in service on March 3,2018 with a 5-year MACRS recovery period. | |
Machinery costing $90,000: | |
Land costing $76,000: | |
Building costing $340,000: Placed in service on December 4, 2018 with a39-year MACRS recovery period. |
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson