Exercise 8-24 (Algorithmic) (LO. 3) McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $404,900 in 2023. The taxable income of the business for the year is $70,700 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's § 179 expense deduction for 2023 and any carryover to 2024. § 179 expense deduction for 2023: § 179 carryover to 2024: b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using § 179 expensing? Hint: See Concept Summary 8.3. Additional first-year depreciation for 2023: $ MACRS cost recovery for 2023: $ Total cost recovery for 2023:

Exercise 8-24 (Algorithmic) (LO. 3) McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $404,900 in 2023. The taxable income of the business for the year is $70,700 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's § 179 expense deduction for 2023 and any carryover to 2024. § 179 expense deduction for 2023: § 179 carryover to 2024: b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using § 179 expensing? Hint: See Concept Summary 8.3. Additional first-year depreciation for 2023: $ MACRS cost recovery for 2023: $ Total cost recovery for 2023:

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter8: Depreciation And Sale Of Business Property

Section: Chapter Questions

Problem 4MCQ: James purchased office equipment for his business. The equipment has a depreciable basis of $7,000...

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James purchased office equipment for his business. The equipment has a depreciable basis of $7,000 and was put in service on June 1,2019. James decides to elect straightline depreciation under MACRS for the asset over the minimum number of years (7 years), and does not use bonus depreciation or make the election to expense. What is the amount of his depreciation deduction for the equipment for the 2019 tax year? $2,000 $1,000 $500 $0 None of the above
McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $212,000 in 2023. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's § 179 expense deduction for 2023 and any carryover to 2024. § 179 expense deduction for 2023: $ 5,600 § 179 carryover to 2024: $ 206,400 b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using § 179 expensing? Hint: See Concept Summary 8.3. Additional first-year depreciation for 2023: $ MACRS cost recovery for 2023: $ Total cost recovery for 2023: $ X
McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $212,000 in 2023. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's § 179 expense deduction for 2023 and any carryover to 2024. § 179 expense deduction for 2023: $ 5,600 ✓ § 179 carryover to 2024: $ 206,400 b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using § 179 expensing? Hint: See Concept Summary 8.3. Additional first-year depreciation for 2023: ox MACRS cost recovery for 2023: Total cost recovery for 2023: $ 0 X 0 X
Subject : accounting On September 14, 2022, Jay purchased a passenger automobile that is used 75 percent in his business. The automobile has a basis for depreciation purposes of $48,000, and Jay uses the accelerated method under MACRS. Jay does not elect to expense under section 179. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. Calculate Jay's depreciation deduction for 2022 assuming bonus depreciation.
Megha Nhon Corp., a vat registered taxpayer made the following acquisition of equipment from vat registered suppliers (net of vat) during 2021 and 2022: Date Purchase price Useful life (yrs) Oct. 1, 2021 2,000,000 6 Apr. 1, 2022 2,500,000 2 The equipment acquired on Oct. 2021 was sold on Apr. 2022. How much is the creditable input vat on Apr. 2022? P216,000 P324,000 P516,000 P300,000
For calendar year 2023, Stuart and Pamela Gibson file a joint return reflecting AGI of $369,400. Their itemized deductions are as follows: Note: All expenses are before any applicable limitations, unless otherwise noted. Casualty loss in a Federally declared disaster area (not covered by insurance; before the 10%-of-AGI limitation but after the $100 floor) Home mortgage interest (loan qualifies as acquisition indebtedness) Credit card interest Property taxes on home Charitable contributions State income tax Tax return preparation fees $54,400 21,760 1,088 16,320 29,920 19,040 1,632 Round your final answers to the nearest whole dollar. Calculate the amount of itemized deductions the Gibsons may claim for the year.
Andy purchased a new desk for $750 on May 1, 2021. He immediately placed it into service for his accounting business. He will depreciate it using the 200% declining balance method and the half-year convention. How much is his 2021 depreciation deduction? A.$75 B.$107 C.$150 D.$750
A taxpayer places a $50,000 5-year recovery period asset in service in 2020. This is the only asset placed in service in 2020. Assuming half-year convention and an election to expense under Section 179 (no bonus depreciation), and taxable income after all deductions except Section 179 of $5,000, what is the amount of Section 179 immediate expensing? a.$50,000 b.$5,000 c.$0 d.$30,000 e.$25,000
In 2021, Peter Quill had a 5 179 deduction carryover of $40,000. In 2022, Peter elected 5 179 for an asset acquired at a cost of $120,000. Peter's $ 179 business income imitation for 2022 is $130.000. Determine Peter's § 179 deduction for 2022 O a $25,000 Ob $115,000 Oc$130,000 Od $140,000
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Q. Hunt Co began operations in 2025. Estimated warranty expense of $800,000 will be deductible in 2026, $300,000 in 2027, and $100,000 in 2028. The use of the depreciable assets will result in taxable amounts of $650,000 in each of the next three years. Pretax financial income was $950,000. Instructions (a) Prepare a table of future taxable and deductible amounts. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025, assuming an income tax rate of 20% for all years.
Woolard Supplies (a sole proprietorship) has taxable income in 2021 of $300,000 before any depreciation deductions (Section 179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture does not qualify for bonus depreciation. Asset Placed in Service Basis Office furniture (used) June 5 $1,300,000 If Woolard elects the maximum amount of Section 179 for the year: a. What is the amount of MACRS depreciation expense for the year? b. What is the amount of deductible Section 179 expense for the year? c. What is Woolard's Section 179 carryforward amount to next year, if any?