Amanda operates an oil and gas business in Waco, Texas. On May 1, 2020, Amanda purchased a warehouse for her business. The warehouse cost $1,500,000 ($500,000 for land and $1,000,000 for improvements). In November 2020, Amanda purchased the following business property, equipment for $100,000, light-duty truck for $50.000, and office furniture for $50,000. Please calculate Amanda's 2020 depreciation deductions. Be sure to explain your calculations fully. Ignore bonus depreciation and the 179 election How much and what type of income would Amanda report if she decided to sell the warehouse and business property on October 1, 2021 so she could upgrade the business? Assume she could sell the warehouse and land for $2,000,000 and the business property for $180,000 ($85,000 for equipment, $47,500 for truck, and $45,000 for office furniture). To simplify your calculations, you can ignore any depreciation deductions for 2021. Be sure to fully explain your answer. Previous Next