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Boxer LLC has acquired various types of assets recently used 100 percent in its trade or business. Below is a list of assets acquired during
Boxer LLC has acquired various types of assets recently used 100 percent in its trade or business. Below is a list of assets acquired during 2021 and 2022:
Asset | Cost Basis | Convention | Date Placed in Service |
---|---|---|---|
Machinery | $ 25,000 | Half-year | January 24, 2021 |
Warehouse | 800,000 | Mid-month | August 1, 2021 |
Furniture | 100,000 | October 5, 2022 | |
Computer equipment | 65,000 | October 10, 2022 | |
Office equipment | 34,000 | September 28, 2022 | |
Automobile | 65,000 | July 15, 2022 | |
Office building | 800,000 | September 24, 2022 |
Boxer did not elect 179 expense and elected out of bonus depreciation in 2021 but would like to take advantage of the 179 expense and bonus depreciation for 2022 (assume that taxable income is sufficient). Calculate Boxer's maximum depreciation deduction for 2022. (Use MACRS Table 1, MACRS Table 5, and Exhibit 10-10.)
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