On June 15, 2023, Chang purchases $2,937,000 of equipment (seven-year property) for use in their business. It is their only purchase of business property in 2023. Chang has taxable income from their business of $2.5 million before any cost recovery. Click here to access depreciation Table 8-2. (If required, round your answers to the nearest dollar.) a. Assuming Chang does not elect Section 179 and elects out of bonus depreciation, what is their total 2023 cost recovery? $ 419,697 b. Assuming Chang elects the maximum Section 179 deduction allowable and elects out of bonus depreciation, what is their total 2023 cost recovery? 2,937,000 × $ c. Assuming Chang elects the maximum Section 179 deduction allowable and does not elect out of bonus depreciation, what is their total 2023 cost recovery? 2,937,000 ×
On June 15, 2023, Chang purchases $2,937,000 of equipment (seven-year property) for use in their business. It is their only purchase of business property in 2023. Chang has taxable income from their business of $2.5 million before any cost recovery. Click here to access depreciation Table 8-2. (If required, round your answers to the nearest dollar.) a. Assuming Chang does not elect Section 179 and elects out of bonus depreciation, what is their total 2023 cost recovery? $ 419,697 b. Assuming Chang elects the maximum Section 179 deduction allowable and elects out of bonus depreciation, what is their total 2023 cost recovery? 2,937,000 × $ c. Assuming Chang elects the maximum Section 179 deduction allowable and does not elect out of bonus depreciation, what is their total 2023 cost recovery? 2,937,000 ×
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 51P
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Transcribed Image Text:On June 15, 2023, Chang purchases $2,937,000 of equipment (seven-year property) for use in their business. It is their only purchase of business property in 2023. Chang has taxable
income from their business of $2.5 million before any cost recovery.
Click here to access depreciation Table 8-2. (If required, round your answers to the nearest dollar.)
a. Assuming Chang does not elect Section 179 and elects out of bonus depreciation, what is their total 2023 cost recovery?
$
419,697
b. Assuming Chang elects the maximum Section 179 deduction allowable and elects out of bonus depreciation, what is their total 2023 cost recovery?
2,937,000 ×
$
c. Assuming Chang elects the maximum Section 179 deduction allowable and does not elect out of bonus depreciation, what is their total 2023 cost recovery?
2,937,000 ×
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