e. A moving company purchased a lightweight truck, which cost $38,650 on March 8, 2014. 2.A hair salon purchases a new computer for the checkout desk on October 21, 2016 for $1,500, which was the only property it purchased that year. The firm sells the equipment on October 3, 2018. 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 computer in 2018? (10 points)
2 3.A textile company purchased the following assets throughout 2018: Asset Placed in service Initial Basis Land for mill January 1 $1,000,000 Mill building January 1 $300,000 Equipment (new) March 4 $1,800,000 Small used truck for deliveries June 8 $25,000 Total $3,125,000 What is the maximum totaldepreciation expense possible that the corporation may deduct in 2018? Assume that the land and mill building do not qualify as qualified real property for Sec. 179 and that the company has sufficient taxable income that it creates no binding limitation on any potential Sec. 179 expense (if applicable). (15 points) Asset Orig. Basis §179 Expense Remain. Basis Bonus Remain. Basis Reg. Deprec Rate Reg. Deprec Expense Land Equipment Used truck Building Total §179 Expense Total Bonus depreciation Total Depreciation Expense 4.Part a. Google acquired the assets of a small company on May 1, 2018 for $20 million where $3 million of it was ultimately allocated to the tax basis of a patent the small company had held. At the date of purchase, the patent had a remaining life (until the patent’s expiration date) of exactly 5 years (60 months). What was the total amount of amortization that Google can recognize in 2018 for the patent?