Question
Burbank Corporation (calendar-year-end) acquired the following property this year:(Use MACRS Table 1, Table 2 and Exhibit 10-10.) (Round your answer to the nearest whole dollar
Burbank Corporation (calendar-year-end) acquired the following property this year:(Use MACRS Table 1, Table 2 and Exhibit 10-10.) (Round your answer to the nearest whole dollar amount.)
Asset | Placed in Service | Basis | |
Used copier | November 12 | $ | 10,600 |
New computer equipment | June 6 | 16,800 | |
Furniture | July 15 | 34,800 | |
New delivery truck | October 28 | 21,800 | |
Luxury auto | January 31 | 72,800 | |
Total | $ | 156,800 | |
|
Burbank acquired the copier in a tax-deferred transaction when the shareholder contributed the copier to the business in exchange for stock.
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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