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Burbank Corporation (calendar-year-end) acquired the following property this year:(Use MACRS Table 1, Table 2and Exhibit 10-10.) (Round your answer to the nearest whole dollar amount.)

Burbank Corporation (calendar-year-end) acquired the following property this year:(Use MACRS Table 1, Table 2and Exhibit 10-10.) (Round your answer to the nearest whole dollar amount.)

Asset Placed in Service Basis
Used copier November 12 $ 9,000
New computer equipment June 6 15,200
Furniture July 15 33,200
New delivery truck October 28 20,200
Luxury auto January 31 71,200
Total $ 148,800

Burbank acquired the copier in a tax-deferred transaction when the shareholder contributed the copier to the business in exchange for stock.

Problem 10-69 Part a

a. Assuming no bonus or 179 expense, what is Burbanks maximum cost recovery deduction for this year?

b. Assuming Burbank would like to maximize its cost recovery deductions by claiming bonus and 179 expense, which assets should Burbank immediately expense? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

  • Used Copier
  • New Computer Equipment
  • Furniture
  • New Delivery Truck
  • Luxury Auto

c. What is Burbanks maximum cost recovery deduction this year assuming it elects 179 expense and claims bonus depreciation?

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