Question
A Corporation follows a calendar year tax period. During its 2018 tax year, the business purchased the following assets: A desk and chair for each
A Corporation follows a calendar year tax period. During its 2018 tax year, the business purchased the following assets:
A desk and chair for each employee: purchased on March 15, total $400,000.
Desktop computers for each employee: purchased on April 3, total $500,000.
All of the above property is brand new and has been used entirely for business purposes since its purchase
(i.e., does not constitute listed property that has mixed personal and business use).
Assume that the taxpayer desires themaximum total depreciation expense for the year possible under the specific, separate details for each of the below.
Further, assume that the company has sufficient taxable income such that,at least in terms of taxable income, there is no binding limitation on any potential Sec. 179 expense.
Assume the taxpayer claimedno Sec. 179 expense in 2018.
How much bonus depreciation will the taxpayer claim in 2018, and what is the remaining basis foreachof the categories above left after applying bonus depreciation?
Bonus depreciation=?
Remaining basis for desks & chairs=?
Remaining basis for computers=?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started