Assume Rabbit Corporation (calendar year end) has 2021 taxable income of $500,000 for purposes ofcomputing the §179 expense. During 2021, Rabbit acquired the following assets:Placed inAssetMachineryServiceAugust 12Computer Equipment February 10April 2Basis$2,150,000365,000480,000Office FurnitureDetermine Rabbit's maximum cost recovery under the following situations:(a) Rabbit opts out of bonus depreciation but elects §179Total Maximum Cost Recovery for 2021(b) Rabbit does NOT opt out of bonus depreciation.Total Maximum Cost Recovery for 2021

Depreciation is considered as the method of allocating the cost of tangible asset over its useful…

Assume Rabbit Corporation (calendar year end) has 2021 taxable income of $500,000 for purposes of computing the §179 expense. During 2021, Rabbit acquired the following assets: Placed in Asset Machinery Basis $2,150,000 Service August 12 Computer Equipment February 10 April 2 365,000 Office Furniture 480,000 Determine Rabbit's maximum cost recovery under the following situations: (a) Rabbit opts out of bonus depreciation but elects §179 Total Maximum Cost Recovery for 2021 (b) Rabbit does NOT opt out of bonus depreciation. Total Maximum Cost Recovery for 2021

Assume Rabbit Corporation (calendar year end) has 2021 taxable income of $500,000 for purposes of computing the §179 expense. During 2021, Rabbit acquired the following assets: Placed in Asset Machinery Basis $2,150,000 Service August 12 Computer Equipment February 10 April 2 365,000 Office Furniture 480,000 Determine Rabbit's maximum cost recovery under the following situations: (a) Rabbit opts out of bonus depreciation but elects §179 Total Maximum Cost Recovery for 2021 (b) Rabbit does NOT opt out of bonus depreciation. Total Maximum Cost Recovery for 2021

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 33P

See similar textbooks

Similar questions

Hypothetical Corporation incurred the following expenses: 2019 2020Research and Development 619,000 703,000 The new product will be available for sale July 1, 2021. Calculate the deduction for R&D expenses for 2019, 2020, and 2021 under the following independent assumptions:a. Armando Corporation elects to expense the R&D expenses. b. Armando Corporation elects to amortize the R&D expenses over 60 months.
Assume that Timberline Corporation has 2023 taxable income of $248,000 for purposes of computing the §179 expense. It acquired the following assets in 2023: (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Asset Furniture (7-year) Computer equipment (5-year) Copier (5-year) Machinery (7-year) Total Problem 10-58 Part a (Algo) Purchase Date December 1 February 28 a-1. Maximum §179 expense a-2. Maximum §179 carryforward to 2023 July 15 May 22 Required: a-1. What is the maximum amount of $179 expense Timberline may deduct for 2023? a-2. What is Timberline's §179 carryforward to 2024, if any? $ 1,050,000 $ Basis $ 526,000 98,000 38,000 588,000 $ 1,250,000 0
Assume that TDW Corporation (calendar-year-end) has 2023 taxable income of $652,000 for purposes of computing the §179 expense. The company acquired the following assets during 2023: (Use MACRS Table 1, Table 2, Table 3, Table 4. and Table 5.) Asset Machinery Computer equipment Furniture Total Placed in Service September 12 February 10 April 2 Basis $2,270,250 263,325 880,425 $ 3,414,000 Problem 10-57 Part b (Algo) b. What is the maximum total depreciation, including §179 expense, that TDW may deduct in 2023 on the assets it placed in service in 2023, assuming no bonus depreciation? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Maximum total depreciation deduction (including §179 expense)
Assume that Sivart Corporation has 2023 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. (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Asset Machinery Computer equipment Delivery Truck-used Furniture Total Placed in Service June 12 February 10 August 21 April 2 Basis $ 1,440,000 70,000 93,000 310,000 $ 1,913,000 b. What is the maximum total depreciation (§179, bonus, MACRS) that Sivart may deduct in 2023 on the assets it placed in service in 2023?
WITH SOLUTION /COMPUTATION 64.On December 31,2019, an entity sold a machine with useful life of 10 years to another entity andsimultaneously leased it back for two years at annual rental of P360,000. Sale price at fair value 3,600,000 Caryingamount 3,300,000 What amount of revenue from sale of the machine should be reported in 2019? 150,000 300,000 360,000 180,000
In 2020, LRRR Corp., a calendar year corporation, acquired and placed in service the assets listed below. Asset Placed in Service Cost Recovery Period Computer 8/21/2020 1,050,000 5 years Machine 10/12/2020 1,000,000 7 years Warehouse 12/2/2020 2,000,000 39 years Assume (1) no bonus depreciation, (2) no Section 179 expense for question. 1. What convention is used to depreciate each asset and why? 2. What is the total depreciation expense LRRR Corp. may deduct in 2020? 3. What is LRRR Corps's deprecation expense in 2021? 4. Assume LRRR Corp sold all assets on May 23, 2022. What is LRRR Corps's depreciation expense in 2022? 5. Explain (in words, not calculations) what would be different is the Machine was placed in service on April 12, 2020. 6. If bonus depreciation is taken on all eligible assets, what is the total depreciation for 2020?
Assume that Sivart Corporation has 2023 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. (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) 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 b. What is the maximum total depreciation (§179, bonus, MACRS) that Sivart may deduct in 2023 on the assets it placed in service in 2023?
Accounting for Various Intangible Costs: Amortization, Change in Accounting Estimate Munn Inc. reported other noncurrent asset account balances on December 31, 2020, as follows. Patent $672,000 Accumulated amortization (84.000) Net patent $588,000 Transactions during 2021 and other information relating to Munn’s other noncurrent assets include the following. 1. The patent was purchased from Grey Company on January 2, 2019, when the remaining legal life was 16 years. On January 1, 2021, Munn determined that the remaining useful life of the patent was only eight years from the date of its acquisition. 2. On January 1, 2021, in connection with the purchase of a trademark from Cody Corp., the parties entered into a noncompetition agreement. Munn paid Cody $2,800,000, of which 75% related to the trademark and 25% reflected Cody’s agreement not to compete for a period of five years in the line of business covered by the trademark. Munn considers the life of the trademark to be…
Assume that TDW Corporation (calendar-year-end) has 2020 taxable income of $692,000 for purposes of computing the §179 expense. The company acquired the following assets during 2020: (Use MACRS 2020 Table 1, Table 2, Table 3, Table 4 and Table 5.) Placed in Asset Service Basis Machinery September 12 $ 2,275,250 Computer equipment February 10 269,825 Furniture April 2 888,925 Total $ 3,434,000 What is the maximum amount of §179 expense TDW may deduct for 2020?
Assume REH AG, a hypothetical company, incurs expenditures of AC1,000 per month during the fiscal year ended December 31, 2019 to develop software for internal use. Under IFRS, the company must treat the expenditures as an expense until the software meets the criteria for recognition as an intangible asset, after which time the expenditures can be capitalized as an intangible asset. 1 What is the accounting impact of the company being able to demonstrate that the software met the criteria for recognition as an intangible asset on February 1 versus December 1? 2 How would the treatment of expenditures differ if the company reported under US GAAP and it had established in 2018 that the project was likely to be completed and the software used to perform the function intended?
Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations. If required, round your answers to nearest dollar. a. Amber Corporation donated inventory of clothing (basis of $128,500, fair market value of $160,625) to a qualified charitable organization that operates homeless shelters. X
Assume that Sivart Corporation has 2022 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. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) 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 2022?