Question
Brandon (MFJ ) runs a bicycle manufacturing store . He presents assets purchased and placed in service during the year : Equipment (7 year) (purchased
Brandon (MFJ ) runs a bicycle manufacturing store . He presents assets purchased and placed in service during the year : Equipment (7 year) (purchased on 06/10/2022) 1,140,000 Delivery van(purchased on 4/15/2022) 69,000 Warehouse (39 year) (purchased on 10/2/2022) 800,000 Computers (5 year) (purchased on 9/6/2022) 40,000 *Delivery van is considered a luxury automobile for tax purposes. Assuming that Brandon claims the maximum amount of 179 but does not claim bonus depreciation, calculate Brandon's maximum depreciation deduction including the 179 expense. Note: Assume that Brandon has no depreciable asset other than the assets ( above) purchased in 2022 . Make sure to use MACRS with the 200 percent double declining balance method. For 179, apply it in the order of longest to shortest cost recovery period and highest to lowest cost of fixed asset.
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