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1 . Janey purchased machinery on April 8 of the current year. The relevant costs for the year are as follows: machinery for $ 1

1. Janey purchased machinery on April 8 of the current year. The relevant costs for the year are as follows: machinery for $12,000, $800 shipping, $175 for delivery insurance, $625 for installation, $1,020 for sales tax, $460 for the annual tune-up, and $120 of property taxes (an annual tax on business property). What is Janey\'s tax basis for the machinery? Calculate the maximum depreciation expense ignoring 179 and bonus depreciation.
2. Jaussi purchased a computer several years ago for $2,200 and used it for personal purposes. On November 10 of the current year, when the fair market value of the computer was $700, Jaussi converted it to business use. This is the only asset Jaussi placed in service during the tax year. What is Jaussi\'s tax basis for the computer? Calculate the maximum depreciation expense ignoring 179 and bonus depreciation.
3. Roth LLC purchased only one asset during the current year. On August 1, Roth placed in service office equipment (seven-year property) with a basis of $68,500. Calculate the maximum depreciation expense ignoring 179 and bonus depreciation.
4. Eddie purchased only one asset during the current year. On November 1, Eddie placed in service furniture with a basis of $28,500. Calculate the maximum depreciation deduction ignoring 179 and bonus depreciation.
5. Amit purchased an automobile this year for $84,000. He used it 75% for business. How much can he deduct if he does not take bonus depreciation?

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