Way Corporation disposed of the following tangible personal property assets in the current year. Date Date Original Asset Acquired Sold Convention Basis Furniture (7-year) 5/12/16 7/15/20 HY $ 60,000 Machinery (7-year) 3/23/17 3/15/20 MQ 77,000 Delivery truck* (5-year) 9/17/18 3/13/20 HY 24,000 Machinery (7-year) 10/11/19 8/11/20 MQ 275,200 Computer (5-year) 10/11/20 12/15/20 HY 84,000 *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation’s 2020 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.) a. Depreciation Deduction?
Way Corporation disposed of the following tangible personal property assets in the current year. Date Date Original Asset Acquired Sold Convention Basis Furniture (7-year) 5/12/16 7/15/20 HY $ 60,000 Machinery (7-year) 3/23/17 3/15/20 MQ 77,000 Delivery truck* (5-year) 9/17/18 3/13/20 HY 24,000 Machinery (7-year) 10/11/19 8/11/20 MQ 275,200 Computer (5-year) 10/11/20 12/15/20 HY 84,000 *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation’s 2020 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.) a. Depreciation Deduction?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions
Section: Chapter Questions
Problem 37P
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Way Corporation disposed of the following tangible personal property assets in the current year.
| Date | Date | Original | |||
| Asset | Acquired | Sold | Convention | Basis | |
| Furniture (7-year) | 5/12/16 | 7/15/20 | HY | $ | 60,000 |
| Machinery (7-year) | 3/23/17 | 3/15/20 | MQ | 77,000 | |
| Delivery truck* (5-year) | 9/17/18 | 3/13/20 | HY | 24,000 | |
| Machinery (7-year) | 10/11/19 | 8/11/20 | MQ | 275,200 | |
| Computer (5-year) | 10/11/20 | 12/15/20 | HY | 84,000 | |
*Used 100 percent for business.
Assume that the delivery truck is not a luxury auto. Calculate Way Corporation’s 2020
a. Depreciation Deduction?
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