1 Norwell Company purchased $1,413,200 of new business equipment on July 10, 2020 This was Norwell's only asset purchase for its 2020 taxable year Compute Norwell's total tax depreciation deduction for this 7 year recovery property (assuming Norwell has sufficnet income for the Section 179 deduction) 2 Belsap Inc , a calendar year taxpayer, purchased a total of $590,000 depreciable personalty during May 2020 Which of the following statements is true Multiple Choice Belsap can elect to expense 100 of the cost The amount of cost that Belsap can elect to expense depends on Belsap's 2020 taxable income Belsap can elect to expense $510,000 of the cost The $80,000 remaining cost is capitalized and subject to MACRS depreciation Incorrect Belsap can elect to expense $510,000 of the cost The $80,000 remaining cost is capitalized and is not depreciable 3 B P Inc , a calendar year corporation, purchased only one operating asset during 2020 $599,900 of used computer equipment (5 year recovery property) placed in service on March 18 Assuming that B P makes a Section 179 election, compute B Ps adjusted tax basis in the property at the end of 2020

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1.Norwell Company purchased $1,413,200 of new business equipment on July 10, 2020. This was Norwell's only asset purchase for its 2020 taxable year. Compute Norwell's

1.Norwell Company purchased $1,413,200 of new business equipment on July 10, 2020. This was Norwell's only asset purchase for its 2020 taxable year. Compute Norwell's total tax depreciation deduction for this 7-year recovery property (assuming Norwell has sufficnet income for the Section 179 deduction). ?

2.Belsap Inc., a calendar year taxpayer, purchased a total of $590,000 depreciable personalty during May 2020. Which of the following statements is true?

Multiple Choice

Belsap can elect to expense 100% of the cost.
The amount of cost that Belsap can elect to expense depends on Belsap's 2020 taxable income.
Belsap can elect to expense $510,000 of the cost. The $80,000 remaining cost is capitalized and subject to MACRS depreciation.
Incorrect
Belsap can elect to expense $510,000 of the cost. The $80,000 remaining cost is capitalized and is not depreciable.

3.B&P Inc., a calendar year corporation, purchased only one operating asset during 2020: $599,900 of used computer equipment (5-year recovery property) placed in service on March 18. Assuming that B&P makes a Section 179 election, compute B&Ps adjusted tax basis in the property at the end of 2020.?