Question
A calendar-year taxpayer acquired four new machines in 2019 on the dates shown below. Section 179 is not elected, but regular MACRS is used to
A calendar-year taxpayer acquired four new machines in 2019 on the dates shown below. Section 179 is not elected, but regular MACRS is used to depreciate the machines. The machines have a recovery period of 7 years. The taxpayer elects out of taking bonus depreciation.
February 1 $50,000
April 1 70,000
October 1 60,000
December 1 80,000
a. compute total MACRS depreciation expense for 2019 that would be reported on Schedule C, using the appropriate averaging convention.
b. Same as in part A., except that the third machine was acquired on September 30 (instead of October 1) Comment on the significance of the difference between this amount and your answer to part a.
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Case Studies In Forensic Accounting And Fraud Auditing
Authors: Professor D. Larry Crumbley, Wilson LaGraize, Christopher E. Peters
2nd Edition
0808041932, 978-0808041931
