Problem Set #4 1. Gina places $40,000 of equipment in service in 2009. (Ignore the Section 179 election.) (a) Using the percentages from the handout, what’s her depreciation deduction for 2009? (b) 2010? (c) If she sells it for $25,000 in 2011, what’s her depreciation in 2011, and what’s her gain or loss on the sale? 2. Maxine places $600,000 of equipment in service in 2010. If she makes the maximum Section 179 election, what’s her total deduction for the year? (Hint: You will be adding two numbers together to get the answer.) 3. Bonnie places $2,230,000 of equipment in service in 2010. What’s the maximum Section 179 election available to her? 4. Ernesto places in service on March 1, 2009, a warehouse that cost $2,000,000, with $291,800 of that cost representing the cost of the land. What’s his depreciation deduction for 2009? 2010? If he sells it on July 30, 2011, what’s his deduction for 2011? 5. Alice places the following items of equipment in service on the dates indicated in 2009: Item A, $35,000
This is the end of the preview. Sign up
access the rest of the document.