Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Textbook Question
Chapter 8, Problem 8MCQ
Which of the following is not considered a limit on the immediate expensing election of Section 179?
- Fifty percent of qualified improvement property
- Total Section 179 -eligible property acquired in excess of $3,570,000
- The taxable income of the taxpayer considering all income and deductions except for Section 179 immediate expensing
- An annual limit of $1,020,000
- None of the above
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Students have asked these similar questions
In 2020, Company W elected under Section 179 to expense $19,300 of the cost of qualifying property. However, it could deduct only
$15,000 of the expense because of the taxable income limitation. In 2021, Company W's taxable income before any Section 179
deduction was $1,812,000.
Required:
a. Compute its 2021 Section 179 deduction if the total cost of qualifying property purchased in 2021 was $13,600.
b. Compute its 2021 Section 179 deduction if the total cost of qualifying property purchased in 2021 was $1,048,000.
Complete this question by entering your answers in the tabs below.
Answer is complete but not entirely correct.
Required A Required B
Compute its 2021 Section 179 deduction if the total cost of qualifying property purchased in 2021 was $1,048,000.
Deduction
$ 1,040,000 X
In 2021, Company W elected under Section 179 to expense $19,300 of the cost of qualifying property.
However, it could deduct only $15,000 of the expense because of the taxable income limitation. In 2022,
Company W's taxable income before any Section 179 deduction was $1,812,000.
Required:
a. Compute its 2022 Section 179 deduction if the total cost of qualifying property purchased in 2022 was
$13,600.
Deduction?
b. Compute its 2022 Section 179 deduction if the total cost of qualifying property purchased in 2022 was
$1,078,000.
Deduction?
2-7. The taxpayer is a real estate dealer
Consideration on the sale, per deed of sale
Zonal value
Fair market value in the assessment rolls
P4,000,000
4,200,000
4,500,000
Payments, as follows:
May 5, 2018 (date of sale)
November 9, 2018
May 5, 2019
November 5, 2019·
Value-added tax shown in the deed of sale?
Output value-added tax on May 5, 2018 col-
lection?
500,000
500,000
1,500,000
1,500,000
Chapter 8 Solutions
Income Tax Fundamentals 2020
Ch. 8 - Alice purchases a rental house on August 22,2019,...Ch. 8 - An asset (not an automobile) put in service in...Ch. 8 - An asset (not an automobile) put in service in...Ch. 8 - James purchased office equipment for his business....Ch. 8 - Which of the following statements with respect to...Ch. 8 - Which of the following is not true about the MACRS...Ch. 8 - On July 20,2019, Kelli purchases office equipment...Ch. 8 - Which of the following is not considered a limit...Ch. 8 - In 2019, Ben purchases and places in service a new...Ch. 8 - In 2019, Ben purchases and places in service a new...
Ch. 8 - Prob. 11MCQCh. 8 - Prob. 12MCQCh. 8 - Prob. 13MCQCh. 8 - In 2019, Mary sells for $24,000 a machine used in...Ch. 8 - Prob. 15MCQCh. 8 - Prob. 16MCQCh. 8 - Virginia has business property that is stolen and...Ch. 8 - Pat sells land for $25,000 cash and a $75,000...Ch. 8 - Prob. 19MCQCh. 8 - Prob. 20MCQCh. 8 - Oscar owns a building that is destroyed in a...Ch. 8 - Prob. 22MCQCh. 8 - Prob. 1PCh. 8 - Prob. 2PCh. 8 - 3. Mike purchases a new heavy-duty truck (5-year...Ch. 8 - On March 8,2019, Holly purchased a residential...Ch. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Calculate the following: The first year of...Ch. 8 - During 2019, William purchases the following...Ch. 8 - On February 2,2019, Alexandra purchases a personal...Ch. 8 - On September 14,2019, Jay purchased a passenger...Ch. 8 - Tom has a successful business with $100,000 of...Ch. 8 - Prob. 14PCh. 8 - Annie develops a successful tax practice. She...Ch. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Prob. 20PCh. 8 - Prob. 21P
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