Question

1 Approved Answer

Posted on Aug 26, 2024

All tables are provided. Sanford Corporation uses the calendar year as its tax year. It purchases and places into service $1.52 million of property during

All tables are provided. image text in transcribed

Sanford Corporation uses the calendar year as its tax year. It purchases and places into service $1.52 million of property during 2019 to use in its business: A (Click the icon to view the assets.) Read the requirements. A Requirements What is Sanford's total depreciation deduction for 2019 in each of the following circumstances? Assume that Sanford elects out of bonus depreciation. a. Sanford does not claim Sec. 179 expensing. b. Sanford claims Sec. 179 expensing for $660,000 of the office furniture's cost and $360,000 fo the office machinery's cost. Sanford claims Sec. 179 expensing for $630,000 of the office furniture's cost and $390,000 of the office machinery's cost. Print Done Placed into service Cost Recovery Period Apartment building* May 1 $ 470,000 27.5 years Office furniture June 23 $ 660,000 7 years Office machinery October 15 $ 390,000 5 years * $100,000 of the cost pertains to the land on which the apartment building is located. Recovery period and Depreciation Rates Recovery Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 33.33 10.00 5.00 Year 1 Year 2 44.45 20.00 32.00 19.20 18.00 14.40 14.81 7.41 Year 3 Year 4 Year 5 Year 6 11.52 11.52 14.29 24.49 17.49 12.49 8.93 8.92 002 11.52 9.22 7.37 55 9.50 8.55 7.70 6.93 6.23 3.750 7.219 6.677 6.177 5.713 5.285 1 000 5.76 "ProuwIU DUPI Month in the First Recovery Year the Property is placed in Service and Depreciation Rate Recovery Year 1 2 3 4 5 6 7 8 9 Year 1 3.485 3.182 2.8792.576 2.273 1.970 1.667 1.364 1.061 Year 2 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.6363.636 Year 3 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 4 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 5 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 6 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 7 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 8 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 9 3.6363.636 3.636 3.6363.636 3.636 3.636 3.636 3.636 Voor in 2027 2027 2027 2027 2027 2027 2028 2020 2020 10 0.758 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 2020 11 0.455 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 2028 12 0.152 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 2029 Recovery period and Depreciation Rates Recovery Year 3-Year 5-Year 15-Year 20-Year 6.25 Year 1 Year 2 Year 3 41.67 38.89 25.00 30.00 18.00 11.37 7-Year 17.85 23.47 16.76 10-Year 12.50 17.50 14.00 11.20 14.14 5.30 11.97 Year 4 Year 5 Year 6 11.37 4.688 7.148 6.612 6.116 5.658 5.233 4.841 4.478 8.87 8.87 8.87 3.33 9.38 8.44 7.59 6.83 6.15 5.91 5.90 4.26 8.96 7.17 6.55 6.55 Year 7 Year 8 Applicable Depreciation Metrou: 200 Or 150 Percerit Vecumny Balarice SWILCririy 10 Straiyrit Lire Recovery period and Depreciation Rates Recovery Year 7-Year 15-Year 3.57 1.25 3-Year 8.33 61.11 20.37 10.19 5-Year 5.00 38.00 22.80 Year 1 Year 2 Year 3 Year 4 27.55 19.68 13.68 10-Year 2.50 19.50 15.60 12.48 9.98 7.99 6.55 6.55 14.06 10.04 8.73 8.73 7.64 10.94 9.58 20-Year 0.938 7.430 6.872 6.357 5.880 5.439 5.031 4.654 Year 5 Year 6 Year 7 Year 8 9.88 8.89 8.00 7.20 6.48 5.90 5.90 Sanford Corporation uses the calendar year as its tax year. It purchases and places into service $1.52 million of property during 2019 to use in its business: A (Click the icon to view the assets.) Read the requirements. A Requirements What is Sanford's total depreciation deduction for 2019 in each of the following circumstances? Assume that Sanford elects out of bonus depreciation. a. Sanford does not claim Sec. 179 expensing. b. Sanford claims Sec. 179 expensing for $660,000 of the office furniture's cost and $360,000 fo the office machinery's cost. Sanford claims Sec. 179 expensing for $630,000 of the office furniture's cost and $390,000 of the office machinery's cost. Print Done Placed into service Cost Recovery Period Apartment building* May 1 $ 470,000 27.5 years Office furniture June 23 $ 660,000 7 years Office machinery October 15 $ 390,000 5 years * $100,000 of the cost pertains to the land on which the apartment building is located. Recovery period and Depreciation Rates Recovery Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 33.33 10.00 5.00 Year 1 Year 2 44.45 20.00 32.00 19.20 18.00 14.40 14.81 7.41 Year 3 Year 4 Year 5 Year 6 11.52 11.52 14.29 24.49 17.49 12.49 8.93 8.92 002 11.52 9.22 7.37 55 9.50 8.55 7.70 6.93 6.23 3.750 7.219 6.677 6.177 5.713 5.285 1 000 5.76 "ProuwIU DUPI Month in the First Recovery Year the Property is placed in Service and Depreciation Rate Recovery Year 1 2 3 4 5 6 7 8 9 Year 1 3.485 3.182 2.8792.576 2.273 1.970 1.667 1.364 1.061 Year 2 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.6363.636 Year 3 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 4 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 5 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 6 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 7 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 8 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 9 3.6363.636 3.636 3.6363.636 3.636 3.636 3.636 3.636 Voor in 2027 2027 2027 2027 2027 2027 2028 2020 2020 10 0.758 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 2020 11 0.455 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 2028 12 0.152 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 2029 Recovery period and Depreciation Rates Recovery Year 3-Year 5-Year 15-Year 20-Year 6.25 Year 1 Year 2 Year 3 41.67 38.89 25.00 30.00 18.00 11.37 7-Year 17.85 23.47 16.76 10-Year 12.50 17.50 14.00 11.20 14.14 5.30 11.97 Year 4 Year 5 Year 6 11.37 4.688 7.148 6.612 6.116 5.658 5.233 4.841 4.478 8.87 8.87 8.87 3.33 9.38 8.44 7.59 6.83 6.15 5.91 5.90 4.26 8.96 7.17 6.55 6.55 Year 7 Year 8 Applicable Depreciation Metrou: 200 Or 150 Percerit Vecumny Balarice SWILCririy 10 Straiyrit Lire Recovery period and Depreciation Rates Recovery Year 7-Year 15-Year 3.57 1.25 3-Year 8.33 61.11 20.37 10.19 5-Year 5.00 38.00 22.80 Year 1 Year 2 Year 3 Year 4 27.55 19.68 13.68 10-Year 2.50 19.50 15.60 12.48 9.98 7.99 6.55 6.55 14.06 10.04 8.73 8.73 7.64 10.94 9.58 20-Year 0.938 7.430 6.872 6.357 5.880 5.439 5.031 4.654 Year 5 Year 6 Year 7 Year 8 9.88 8.89 8.00 7.20 6.48 5.90 5.90