Acorn Construction (calendar-year end C-corporation) has had rapid expansion during the last half of the current year
Question:
Acorn Construction (calendar-year end C-corporation) has had rapid expansion during the last half of the current year due to the housing market's recovery. The company has record income and would like to maximize their cost recovery, as much as possible, for the current year. Acorn provided the following information:
Assets__________________________________ Placed in Service _____________Basis_
New Equipment and Tools ...........................August 20 ................... $800,000
Used Light Duty Trucks ..............................October 17 ..................1,200,000
Used Machinery ........................................November 6 ................ 525,000
Total ............................................................................................. $2,525,000
a. What is Acorn's maximum cost recovery expense in the current year?
b. What planning strategies would you advise Acorn to consider?
Step by Step Answer:
a Acorn is not eligible for 179 expensing because its new assets exceed the 2010000 threshold by m...View the full answer
Taxation Of Individuals 2017
ISBN: 9781259548666
8th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
