Bobby's marginal tax rate has been low for several years because his sole proprietorship has had low
Question:
Bobby's marginal tax rate has been low for several years because his sole proprietorship has had low profits. Therefore, he has not elected Sec. 179 expensing, elected out of bonus depreciation, and elected to use the alternative depreciation system for property acquisitions. Bobby acquires, holds, or sells the following assets in 2019:
Assume the half-year convention applies for each year.
a. What is the depreciation deduction for each asset in 2019?
b. What amount of gain or loss does Bobby recognize on the properties sold in 2019?
Transcribed Image Text:
Equipment Light duty truck (Nonpersonal-use) Furniture Automobile Date Original Acquired Date Sold Cost Basis 6/1/19 5/1/15 12/1/19 3/1/15 7/1/16 12/1/19 Recovery Selling Depreciation Period Price Method (Years) $40,000 30,000 $8,000 10,000 12,000 10,000 SL ADS SL ADS SL ADS SL ADS 7 5 7 5
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (8 reviews)
a The depreciation deduction for each asset in 2019 2 34 of 1year st...View the full answer
Answered By
James Warinda
Hi! I’m James Otieno and I'm an experienced professional online tutor with countless hours of success in tutoring many subjects in different disciplines. Specifically, I have handled general management and general business as a tutor in Chegg, Help in Homework and Trans tutor accounts.
I believe that my experience has made me the perfect tutor for students of all ages, so I'm confident I can help you too with finding the solution to your problems. In addition, my approach is compatible with most educational methods and philosophies which means it will be easy for you to find a way in which we can work on things together. In addition, my long experience in the educational field has allowed me to develop a unique approach that is both productive and enjoyable.
I have tutored in course hero for quite some time and was among the top tutors awarded having high helpful rates and reviews. In addition, I have also been lucky enough to be nominated a finalist for the 2nd annual course hero award and the best tutor of the month in may 2022.
I will make sure that any student of yours will have an amazing time at learning with me, because I really care about helping people achieve their goals so if you don't have any worries or concerns whatsoever you should place your trust on me and let me help you get every single thing that you're looking for and more.
In my experience, I have observed that students tend to reach their potential in academics very easily when they are tutored by someone who is extremely dedicated to their academic career not just as a businessman but as a human being in general.
I have successfully tutored many students from different grades and from all sorts of backgrounds, so I'm confident I can help anyone find the solution to their problems and achieve
0.00
0 Reviews
10+ Question Solved
Related Book For
Federal Taxation 2020 Comprehensive
ISBN: 9780135196274
33rd Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
Question Posted:
Students also viewed these Business questions
-
Bobbys marginal tax rate has been low for several years because his sole proprietorship has had low profits. Therefore, he has not elected Sec. 179 expensing, elected out of bonus depreciation, and...
-
Bobby's marginal tax rate has been low for several years because his sole proprietorship has had low profits. Therefore, he has not elected Sec. 179 expensing, elected out of bonus depreciation, and...
-
1. Betty contributed property with a $40,000 basis and fair market value of $85,000 to the Rust Partnership in exchange for a 50% interest in partnership capital and profits. During the first year of...
-
Peete's Coffee and Tea purchased equipment on March 1, 2022 for $17,400. It is estimated that the equipment will have a $300 salvage value at the end of its 6 -year useful life. It is also estimated...
-
Distinguish the role of the client from the role of the lawyer.
-
In a study of schizophrenia, researchers measured the activity of the enzyme monoamine oxidase (MAO) in the blood platelets of 18 patients. The results (expressed as nmoles benzylaldehyde product per...
-
What is the Institute of Internal Auditors' definition of internal auditing?
-
Carey Company had sales in 2016 of $1,560,000 on 60,000 units. Variable costs totaled $900,000, and fixed costs totaled $500,000. A new raw material is available that will decrease the variable costs...
-
Time value??? An Iowa state savings bond can be converted to?$1,000 at maturity 18 years from purchase. If the state bonds areto be competitive with U.S. savings? bonds, which pay 9?% an 2 answers
-
On 1 January 20X4, Dart Incorporated commenced business operations. The following information is available to you: 20X6 $45, 000 20X4 20X5 20X7 $ (300, 000) Earnings (loss) before tax Tax rate...
-
Dana manages real estate and is a cash method taxpayer. She changes to the accrual method in 2020. Dana's business income for 2020 is 530,000 computed on the accrual method. Her books show the...
-
Serena Calman has twin adult children who currently have considerable income but have not saved much for their retirement. She is considering funding a trust that will accumulate income until they...
-
Did the United States adopt additional trade restrictions during and after the COVID-19 crisis? If so, cite evidence.
-
what isthe meaning of both price elasticity and price inelasticity.Be sure to provide an example of a product that tends to have elastic pricing and one that tends to have inelastic pricing.
-
what is the meaning of poor quality in health and social care
-
Given adjacency list representation of a digraph below, does it have a topological order? If so, provide one. Otherwise, explain why. 0: 61 1:346 2: 3:2 4:3 5:6240 6:24 7:3098 8:2436 9:4362
-
Designco Pty Ltd designs, manufactures and distributes craft kits for children. Children use the kits to construct balsa wood models of animals, which can be painted. The directors of the company are...
-
In considering the understanding of a meaning of a word or phrase, select some examples and consider the sources of their control.
-
The space hardware club is building a constellation of cubesats. The first cubesats cost $15000. The next 5 cubesats cost, in total $25000. What is the fixed cost for building cubesats? Discount rate...
-
A red card is illuminated by red light. What color will the card appear? What if its illuminated by blue light?
-
An exempt municipal hospital operates a pharmacy that is staffed by a pharmacist 24 hours per day. The pharmacy serves only hospital patients. Is the pharmacy likely an unrelated trade or business?...
-
Felipe will incur a $1 million Federal transfer tax when he passes a plot of land to Barbara, an unrelated friend. Felipe's after-tax rate of return on his real estate investments is 3%. Compute the...
-
With $5 million, Paul's will creates a trust with the following provisions: life estate to Jacob (Paul's son) and remainder to Anastasia (Paul's granddaughter and Jacob's daughter). Jacob dies when...
-
Tyler believes that some laws passed by his state's legislature are bad, and he refuses to comply with them. He believes a universal law above all others that grants rights to all people and that it...
-
Organizational commitment increases the likelihood that an individual will respond to a negative work event with loyalty or neglect. voice or exit. loyalty or voice. O exit or loyalty.
-
In the context of decision-making, satisficing refers to Selecting options at random without any thought O Always choosing the first available option O Avoiding decisions to reduce cognitive load...
Study smarter with the SolutionInn App