2 Part 2 of 2 Required Information [The following Information applies to the questions displayed below] While completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a technology support company called eSys Answers. During year 1, they bought the following assets and incurred the following start-up fees: Year 1 Assets Computers (5-year) points Office equipment (7-year) Furniture (7-year) Start-up costs Purchase Date October 30, Year 1 Basis $15,200 October 30, Year 1 10,000 October 30, Year 1 3,400 October 30, Year 1 17,360 eBook Print References In April of year 2, they decided to purchase a customer list from a company providing virtually the same services, started by fellow Information systems students preparing to graduate. The customer list cost $10,360, and the sale was completed on April 30. During their summer break, Dallin and Michael passed on Internship opportunities in an attempt to really grow their business into something they could do full time after graduation. In the summer, they purchased a small van (for transportation, not considered a luxury auto) and a pinball machine (to help attract new employees). They bought the van on June 15, Year 2. for $17,000 and spent $3,200 getting it ready to put into service. The pinball machine cost $4,200 and was placed in service on July 1, Year 2 Year 2 Assets Van Pinball machine (2-year) Costoner 11st Purchase Date June 15, Year 2 July 1, Year 2 April 30, Year 2 Basis $20,200 4,200 10,160 Assume that eSys Answers does not claim any $179 expense or bonus depreciation. (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 51 (Round your Intermediate calculations and final answers to the nearest whole dollar amount.) Part 2 of 2 points eBook Print References Required Information [The following Information applies to the questions displayed below.] While completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a technology support company called eSys Answers. During year 1, they bought the following assets and incurred the following start-up fees: Computers (5-year) Year 1 Assets Office equipment (7-year) Furniture (7-year) Purchase Date October 30, Year 1 October 30, Year 1 October 30, Year 1 October 30, Year 1 Basis $15,200 10,000 3,400 17,360 Start-up costs In April of year 2, they decided to purchase a customer list from a company providing virtually the same services, started by fellow Information systems students preparing to graduate. The customer list cost $10,360, and the sale was completed on April 30. During their summer break, Dallin and Michael passed on internship opportunities in an attempt to really grow their business into something they could do full time after graduation. In the summer, they purchased a small van (for transportation, not considered a luxury auto) and a pinball machine (to help attract new employees). They bought the van on June 15, Year 2, for $17.000 and spent $3,200 getting it ready to put into service. The pinball machine cost $4,200 and was placed in service on July 1, Year 2 Year 2 Assets Van Pinball machine (7-year) Customer list Purchase Date June 15, Year 2 July 1, Year 2 April se, Year 2 Basis $ 20,200 4,200 10,160 Assume that eSys Answers does not claim any $179 expense or bonus depreciation. (Use MACRS Table 1. Table 2 Table 3 Table 4 and Table 5) (Round your Intermediate calculations and final answers to the nearest whole doller amount.) 2 Part 2 of 2 points Form 4562 Page 1 and 2. Form 4562 Department of the Treasury Internal Revenue Service (99) Name(s) shown on retum Part Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return Go to www.irs.gov/Form4562 for instructions and the latest information Business or activity to which this form relates OMB No. 1545-0172 2020 Attachmere Sequence No. 179 Identifying number(x) Election To Expense Certain Property Under Section 179 Note: If you have any liated property, complete Part V before you complete Part I +Book 2 Total Cost of section 179 property placed in service (see instructions) 1 Maximum amount (see instructions) 3 Threshold cost of section 170 property before reduction in imitation (see instructions) 4 Reduction in limitation. Subtract line 3 from ine 2. If zero or less, enter-0- 0 0 (c) Elected cos 5 Dollar Imitation for tax year. Subtract line 4 bom line 1. If zero or less erter-If married fing separately see instructions (a) Description of property (b) Cost (business 630) Print 0 References 7 Listed propery Enter the amount from line 29 8 Total elected cost of section 170 property. Add amounts in column (c), lines 6 and 7 9 Tentative deduction. Enter the smaller of line 5 or line & 10 Carryover of disallowed deduction from ine 13 of your 2019 Form 4502 11 Business income limitation, Enter the smaller of business income (not less than zero) or fine 5 see instructions 12 Section 179 axpense deduction Add lines & and 10, but don't enter more than line 11 13 Carryover of disallowed deduction to 2021. Add lines and 10. less line 12 10 12 Note: Do not use Part il or Part Ill below for listed property hatead, use Part V Part II Special Depreciation Allowance and Other Depreciation (Don't include isted property, see instructions 14 Special depreciation allowance for qualified property (other than Ested property placed in service during the tax year See instructions 15 Property subject to section 168(1) election 10 Other depreciation (including ACRS) 141 Part III MACRS Depreciation (Don't include isted property. See instructions) 10 2 Part 2 of 2 Section A 17 MACRS assets placed in serves as years beginning before 2020 18you are electing to group any assets placed in service during the tax year or more general at accounts, check Section B-Assets Placed in Service During 2020 Tax Year Using the General Depreciation System (a) Classification of property points 19a 3-year property Book 5-year property 7-year property d-10-year property for Month and yea depreciation ment (Recovery period Condon Method Depreciation deduction 20-year property 925-year property 26 years SL Pre Residential rental 27.5 years MM BL property 274 years MM $2 Nonresidential 30 years MM SL MM References SIL Section C-Assets Placed in Service During 2020 Tax Year Using the Alternative Depreciation System SL 20 Classif 12-year 30-year 12 years S/L 30 years MM SL 40 years MM SL d 40-year Part IV Summary (See instructions) 21 Lated property. Entar amount from ina 28 22 Total Add amounts from ine 12, Ines 14 through 17/Ines 19 and 20 in coluning and line 21 Enter here and on the Ines of your retum Famanships and Scorporations-see matructions 23 For assets shown above and placed in service during the curent year enter the ponon of the bas atributable to section 262A costs For Paperwork Reduction Act Notice, see separate instructions 22 Cat No. 12900N Form 4562 (202) ORMITIES DO NOT HE 2 Part 2 of 2 Property Note: For any vehicle for which you am using the standard mileage rule or deducting lease expense complete only 24, 24, ook through ( of Section A all of Section B, and Section C Section A-Depreciation and Other Information applicable (Caution: See the instructions for limits for passenger automobiles.) 24a Do you have evidence to support the businessinvestment use claimed Yes No 24b "Yes," is the evidence witen? No 2 points (a) Type of property (st vehicles first (b) Date placed in service (mm/dd/yyyy (e) Business/ investment (d) Cost of other basis use (e) Basis for depreciation (businesa/mvestment use only) Recovery (40 Method Conventon () Depreciation deduction Elected section 179 cost period percentage eBook 25 Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 50% in a qualified business use, see instructions 26 Property used more than 50% in a qualified business use Print 27 Property used 50% or less in a qualified business use References SL SIL SL 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 29 Add amounts in column (), line 20. Enter here and on line 7, page 28 29 Section B-Information on Use of Vehicles Complete this section for vehicles used by a sole proprietor, partner, or other "more than 5% owner or related person. If you provided vehicles to your employees first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles 30 Total business investment mies driven during the year (don't include commuting miles) 31 Total commuting miles driven during the year 32 Total other personal (noncommuting) miles driven 13 Toral miles driven during the year (a) Vehicle 1) (b) Vehicle 2 (c) Vehicle 3 (d) Vehicle 4 (e) Vehicle 5 () Vehicle o 2 Part 2 of 2 points eBook 31 Total commuting miles driven during the year 32 Total other personal (noncommuting) miles driven 33 Total miles driven during the year Add lines 30 through 32 34 Was the vehicle available for personal use during off-duty hours? 35 Ws the vehicle used primarily by a more than 5% owner- or related person? 38 Is another vehicle available for personal use? 0 0 Yes No Yes No Yes No Yes No Yes No Yes No Section C-Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who aren't more than 5% owners or related persons, see instructions Yes No Print 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your employees? 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See the 0000 References instructions for vehicles used by corporate officers, directors, or 1% or more owners 39 Do you treat all use of vehicles by employees as personal use? 40 Do you provide more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retain the information received? 41 Do you meet the requirements concerning qualified automobile demonstration use? See instructions Note: If your answer to 37, 38, 39, 40, or 41 is "Yes" dont complete Section B for the covered vehicles Part VI Amortization (a) Description of costs (b) Date amortization begins (c) Amortizable amount (0) Code section (e) Amortization period or percentage (Amortization for this year 42 Amortization of costs that begins during your 2020 tax year (see nstructions) 43 Amortization of costs that began before your 2020 tax year 44 Total Add amounts in column (f). See the instructions for where to report UYA 44 Form 4562 (2020) THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM IT SELF. DO NOT USE