chapter 8 homework solutions tax

chapter 8 homework solutions tax - p 8-10 45 a Copier...

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Individual Tax Accounting and Planning – 2011 Edition Chapter 8 homework solutions 36. The mid-quarter convention must be used because the cost of the computers acquired in the 4th quarter exceeds 40% of the cost of all the personal property acquired during the year ($60,000/$140,000 = 43%). Furniture (7-year class) MACRS cost recovery ($50,000 × .1785) (Table 8.2) 8,925 Trucks (5-year class) MACRS cost recovery ($30,000 × .15) (Table 8.2) 4,500 Computers (5-year class) MACRS cost recovery ($60,000 × .05) (Table 8.2) 3,000 Total cost recovery $16,425 pp. 8-5 to 8-9 39. 2010: $1,800,000 × .01605 (Table 8.6) = $28,890 2020: $1,800,000 × .02564 (Table 8.6) = $46,152 p. 8-10 40. The building’s depreciable basis is $1,200,000 [$1,400,000 (cost) – $200,000 (land)]. a. 2010: $1,200,000 × .0197 (Table 8.6) = $23,640 b. 2016: $1,200,000 × .03636 (Table 8.6) × 10.5/12 = $38,178
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Unformatted text preview: p. 8-10 45. a. Copier Immediate expense deduction under § 179 $ 50,000 Furniture Immediate expense deduction under § 179 200,000 ($250,000 – $50,000) MACRS cost recovery [($275,000 – $200,000) × .1429] 10,718 Total deduction $260,718 c. Furniture Immediate expense deduction under § 179 $250,000 MACRS cost recovery [($275,000 – $250,000) × .1429] 3,573 Copier Immediate expense deduction under § 179 –0– MACRS cost recovery ($50,000 × .20) 10,000 Individual Tax Accounting and Planning – 2011 Edition Chapter 8 homework solutions Total deduction $263,573 c. The deduction for the year would be $2,855 ($263,573 – $260,718) larger if § 179 expense is first allocated to the furniture (i.e., the longer lived asset). pp. 8-5 to 8-14 and Table 8.1...
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