Large Corporation acquired and placed in service the following 100% business-use assets. Large did not claim Sec.

Question:

Large Corporation acquired and placed in service the following 100% business-use assets. Large did not claim Sec. 179 or bonus depreciation expensing on any of these properties.

• Truck (light-duty, modified non-personal use) costing $36,000: Placed in service on March 3, 2017 with a 5-year MACRS recovery period.

• Machinery costing $85,000: Placed in service on November 15, 2017 with a 7-year MACRS recovery period.

• Land costing $90,000: Placed in service on October 12, 2017.

• Building costing $280,000: Placed in service on December 4, 2017 with a 39-year MACRS recovery period.

a. What is Large’s total depreciation deduction in 2017?

b. Large Corporation sells the machinery on February 2, 2019 and sells the building on September 18, 2019. What are the adjusted bases of these two assets on the dates of sale (compute accumulated depreciation to date of sale)?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...