Chapter 10 Assignment 1.docx - Chapter 10 Assignment 1 1...

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Chapter 10 Assignment 1:1.For a-d, determine the total depreciation amount for 2019 assuming the taxpayer’s opt outof Sec. 179 and bonus. In addition, assume all taxpayers use a calendar year tax period and that the property mentioned was the only property purchased in the year of acquisition.Details at purchaseTotaldepreciationaA local accounting firm purchased 5 new computers for its new staff members for a total cost of $10,000 on January 1,2017.2000bA construction company purchased new furniture for its main office on August 25, 2016, which cost $4,000 in total.
cA landscaping firm purchased a new $30,000 Chevy S10 (alight truck) for the business on October 5, 2014.375dMaggie and Mike purchased a townhouse for $350,000 on July 31, 2019, which they immediately rented out to a tenant.
2.Part a: A manufacturing firm purchased machinery equipment on March 15, 2014 for $250,000, which was the only property it purchased that year. The firm sells the equipment on January 15, 2019. Assume the firm always opts out of Sec. 179 and bonus if available and uses a calendar year tax period. How much total depreciation does the firm have for the machine in 2019?

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