Andrea, a cash method taxpayer, starts her company (an LLC) in 2022. Since her company is new, she has to purchase many items for
Andrea, a cash method taxpayer, starts her company (an LLC) in 2022. Since her company is new, she has to purchase many items for the business. Below are the list of items Andrea purchased in 2022: Date Purchase Item Cost Note 2/05/2022 Computers $50,000 4/13/2022 Furniture $10,000 7/7/2022 Equipment $120,000 11/29/2022 Car $35,000 To use as the delivery vehicle a) What is Andrea's total depreciation expenses in 2022? Show details calculation and explanation. Total Depreciation Expense: $215,000 All assets are new and tangible. Therefore all can contribute to 179 expenses. The max is $1,080,000.00 in a year so the full total of all four assets can contribute as they are less than the max total when combined. | Bonus depreciation for 2022 is 100% Computers $50,000 Furniture = $10,000 Equipment = $120,000 Car = $35,000 Full amount expensed = $215,000 b) What is Andrea's total depreciation expenses in the next year (2023)? Show details calculation and explanation.
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