Asset orig basis 179 expense remain basis bonus

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you should follow this approach on the exam.AssetOrig.Basis§179ExpenseRemain.BasisBonusRemain.BasisReg.DeprecRateReg.DeprecExpenseEquipment (7-year)$1,800,000$510,000$1,290,000$645,000$645,00014.29%$92,170.50Used truck (5- year)$25,000$25,000$25,00020%$5,000Building (non-res)$300,000$300,000$300,0002.461%$7,383§179 Expense $510,000Bonus depreciation$645,000$645,000Total Depreciation Expense $1,259,5543
4.Part a. Google acquired the assets of a small company on May 1, 2017 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 2017 for the patent?(10 points)
Part b. Based on the discussion in your text (and my notes), would your answer to part a. change if Google had instead directly purchased the patent alone from the company for $3 million instead of purchasing it along with the rest of the assets of the small company for a single purchase price? If so, what is the appropriate amortization for 2017 in this alternative scenario? If not, why doesn’t the amortization amount change? (10 points)
5.Robert started an accounting firm in 2017 and organized as a partnership. Performance ofservices began on July 1, 2017. The following expenditures were associated with the partnership’s activities in 2017:ExpenseDateAmountApril 1-June 30 rentMarch 1$15,000June 1-June 30 wagesJune 30$25,000April 1-June 30 utilitiesJune 30$800Legal fees for partnership agreementsJune 25$12,500July 1-Sept. 30 rentJuly 1$15,0004

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