Depreciation

JavaScript isn't enabled in your browser, so this file can't be opened. Enable and reload.

Depreciation

Email *

On January 1, 20A8, TP purchased, for $1,750,000 cash, and placed in service new machinery exclusively for use in TP's business activity. The equipment is purchased from the manufacturer, who is unrelated to TP. This is the only purchase of "Section 179 property" made by TP during 20A8. The equipment has a §168(i)(1) class life of six (6) years. TP expects to use the equipment for nine (9) years, and TP estimates that the equipment will have a salvage value of $250,000 at the end of the period of use. Assume that the property qualifies under §168(b)(1) and ignore §168(b)(1)(B). State the maximum amount of the §179 deduction allowable in 20A8 ignoring §179(b)(3). Assume current year law applies. *

4 points

$500,000

$1,000,000

$1,040,000

$1,200,000

Same facts as above. State the amount of §168(k)(1) depreciation allowable in 20A8, assuming the maximum §179 deduction in 20A8 from your answer above. *

4 points

Same facts as above. State the amount of §168(a) depreciation allowable in 20A8, (1) assuming the maximum §179 deduction in 20A8 from your answer to the first question. Assume the taxpayer elected 0% for purposes of §168(k)(1).

6 points

Same facts as above. State the amount of §168(a) depreciation allowable in 20A9, (1) assuming the maximum §179 deduction in 20A8 from your answer to the first question. Assume the taxpayer elected 0% for purposes of §168(k)(1).

4 points

You're asked to ignore §168(f), (g), (k), (l), (m), (n), and §179 for an asset with a class life of ten years and asked to state the amount of §168 deduction allowable in the year of purchase. What will your calculation involve?

4 points

§179 up to the limit, 100% bonus depreciation for the balance

§179 up to the limit, no bonus depreciation, 20% of remaining cost

no §179, 50% bonus depreciation, 14.29% of remaining cost

no §179, no bonus depreciation, 20% of cost

no §179, no bonus depreciation, 14.29% of cost

Clear selection

Send me a copy of my responses.

Submit

Clear form

Never submit passwords through Google Forms.

reCAPTCHA

Privacy Terms

This form was created inside of Compass Tax Educators. Report Abuse

Forms