Assume that Sivart Corporation has 2020 taxable income of $1,750,000 for purposes of computing the 179 expense
Question:
Assume that Sivart Corporation has 2020 taxable income of $1,750,000 for purposes of computing the §179 expense and acquired several assets during the year. Assume the delivery truck does not qualify for bonus depreciation.
Asset | Placed in Service | Basis | |
Machinery | June 12 | $1,440,000 | |
Computer equipment | February 10 | 70,000 | |
Delivery truck - used | August 21 | 93,000 | |
Furniture | April 2 | 310,000 | |
Total | $1,913,000 | ||
a) What is the maximum amount of §179 expense Sivart may deduct for 2020?
b) What is the maximum total depreciation (§179, bonus, MACRS) that Sivart may deduct in 2020 on the assets it placed in service in 2020?
Step by Step Answer:
a The maximum 179 expense is 1040000 Description Amount Explanation 1 Property placed in service dur...View the full answer
Taxation Of Individuals And Business Entities 2021
ISBN: 9781260247138
12th Edition
Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham
