Way Corporation disposed of the following tangible personal property assets in the current year. Original Basis...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Way Corporation disposed of the following tangible personal property assets in the current year. Original Basis Date Date Acquired 5/12/15 Sold 7/15/19 3/15/19 3/13/19 Asset Convention Furniture (7-year) HY MQ $ ৪0, 000 97,000 Machinery (7-year) Delivery truck* (5-year) Machinery (7-year) Computer (5-year) 3/23/16 9/17/17 10/11/18 10/11/19 HY 8/11/19 12/15/19 40,000 296,000 100,000 мо HY *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2019 depreciation deduction (ignore $179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.) Depreciation deduction Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 Year 2 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 Year 4 14.81 19.20 17.49 14.40 8.55 6.677 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 Year 8 8.93 6.55 5.90 4.888 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 Year 11 Year 12 Year 13 6.55 5.90 4.461 3.28 5.91 4.462 5.90 4.461 5.91 4.462 Year 14 5.90 4.461 Year 15 Year 16 5.91 4.462 2.95 4.461 Year 17 4.462 Year 18 Year 19 Year 20 Year 21 4.461 4.462 4.461 2.231 TABLE 2a MACRS Mid-Quarter Convention: For pr Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 2b MACRS Mid-Quarter Convention: For pr Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 EXHIBIT 10-6 Mid-Quarter Convention Percentage of Full-Year's Depreciation in Year of Disposition Quarter of Disposition Percentage Calculation* 1st 12.5% 1.5/12 2nd 37.5 4.5/12 3rd 62.5 7.5/12 4th 87.5 10.5/12 *The calculation is the number of months the taxpayer held or is deemed to have held the asset in the year of disposition divided by 12 months in the year. Way Corporation disposed of the following tangible personal property assets in the current year. Original Basis Date Date Acquired 5/12/15 Sold 7/15/19 3/15/19 3/13/19 Asset Convention Furniture (7-year) HY MQ $ ৪0, 000 97,000 Machinery (7-year) Delivery truck* (5-year) Machinery (7-year) Computer (5-year) 3/23/16 9/17/17 10/11/18 10/11/19 HY 8/11/19 12/15/19 40,000 296,000 100,000 мо HY *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2019 depreciation deduction (ignore $179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.) Depreciation deduction Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 Year 2 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 Year 4 14.81 19.20 17.49 14.40 8.55 6.677 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 Year 8 8.93 6.55 5.90 4.888 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 Year 11 Year 12 Year 13 6.55 5.90 4.461 3.28 5.91 4.462 5.90 4.461 5.91 4.462 Year 14 5.90 4.461 Year 15 Year 16 5.91 4.462 2.95 4.461 Year 17 4.462 Year 18 Year 19 Year 20 Year 21 4.461 4.462 4.461 2.231 TABLE 2a MACRS Mid-Quarter Convention: For pr Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 2b MACRS Mid-Quarter Convention: For pr Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 EXHIBIT 10-6 Mid-Quarter Convention Percentage of Full-Year's Depreciation in Year of Disposition Quarter of Disposition Percentage Calculation* 1st 12.5% 1.5/12 2nd 37.5 4.5/12 3rd 62.5 7.5/12 4th 87.5 10.5/12 *The calculation is the number of months the taxpayer held or is deemed to have held the asset in the year of disposition divided by 12 months in the year.
Expert Answer:
Related Book For
Essentials of Federal Taxation 2019
ISBN: 9781260190045
10th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
Students also viewed these accounting questions
-
Way Corporation disposed of the following tangible personal property assets in the current year. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2014 depreciation...
-
Way Corporation disposed of the following tangible personal property assets in the current year. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2015 depreciation...
-
Way Corporation disposed of the following tangible personal property assets in the current year. Assume that the delivery truck is not a luxury auto. Calculate Way Corporations 2018 depreciation...
-
In Exercise solve the given equations and check the results. F-3 12 2 3 || 1 - 3F 2
-
Two different forces, acting on the same object, are measured. One force is 2.0031 N and the other force, in the same direction, is 3.12 N. These are the only forces acting on the object. Find the...
-
A dc servomotor is used to drive one of the table axes of an NC milling machine. The motor is coupled directly to the lead screw for the axis, and the lead screw pitch = 5 mm. The optical encoder...
-
How does architecture relate to design?
-
The president of Frogger Company is puzzled. During the last year, the company experienced a net loss of $800,000, yet its cash increased $300,000 during the same period of time. Explain to the...
-
Ethical Finance brings Value to Society, do you think Islamic finance also brings value to society? What are the Islamic social financing channels?
-
A US motivational speaker was brought in by a South African private company as part of its annual general meeting to speak to the sales and marketing staff. Part of the presentation included...
-
3. Provide a brief retrosynthetic analysis and a detailed synthetic scheme for the following target starting from compounds of 4-carbons or less. (stereochemical rationales should be provided where...
-
The figures above show the schematic of an unloaded DC generator (left) and its excitation curve (right). The generator has negligible armature resistance and a shunt field coil resistance of 60 ....
-
Design a two bits Up/Down synchronous counter. It should counts up when the controller is 1 and counts down when the controller is 0. Q2) Design a synchronous counter for the state diagram shown...
-
Consider the following constrained optimization problem: = min f(x1, x) x + x Subject to g(x, x2) = 2x + x 5 OPT-1 (a) Write down the Wolfe dual of the problem (OPT-2) and eliminate (x, y) to obtain...
-
(a) Describe the process for finding X and indicate its value. (b) Describe the process for finding A1 and indicate its value. (c) Describe the process for finding Y and indicate its value. (d) Is...
-
(a) (i) Write JavaScript code to create the object "Photol" that has the following properties and values as shown in Figure 4.0: Property photoID filename description Value 1 1.jpg Photo 1 Figure...
-
What sophisticated methodologies or frameworks does your organization employ to assess employee performance comprehensively and accurately?
-
Research an article from an online source, such as The Economist, Wall Street Journal, Journal of Economic Perspectives, American Journal of Agricultural Economics, or another academic journal. The...
-
Mark is the sole shareholder of Tex Corporation. Mark first formed Tex as a C corporation. However, in an attempt to avoid having Texs income double taxed, Mark elected S corporation status for Tex...
-
In 2018, Zach is single with no dependents. He is not claimed as a dependent on anothers return. All of his income is from salary and he does nothave any for AGI deductions. What is his earned income...
-
Carrie DLake, Reed A. Green, and Doug A. Divot share a passion for golf and decide to go into the golf club manufacturing business together. On January 2, 2018, DLake, Green, and Divot form the...
-
\(X\) is the number of bits in error in the next four bits transmitted. What is the expected value of the square of the number of bits in error? Now, \(h(X)=X^{2}\). Therefore, \[ \begin{aligned}...
-
In Example 4.1, \(X\) is the current measured in milliamperes. What is the expected value of power when the resistance is 100 ohms?
-
Correlation between height and weight for players on the 2014 Brazil World Cup Team, using data from all 23 players on the roster. State whether the quantity described is a parameter or a statistic...
Study smarter with the SolutionInn App