Question
Burbank Corporation (calendar-year-end) acquired the following property this year:(UseMACRSTable 1,Table 2andExhibit 10-10.) (Round your answer to the nearest whole dollar amount.) AssetPlaced in ServiceBasisUsed copierNovember
Burbank Corporation (calendar-year-end) acquired the following property this year:(UseMACRSTable 1,Table 2andExhibit 10-10.)(Round your answer to the nearest whole dollar amount.)
AssetPlaced in ServiceBasisUsed copierNovember 12$8,200New computer equipmentJune 614,400FurnitureJuly 1532,400New delivery truckOctober 2819,400Luxury autoJanuary 3170,400Total$144,800
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 Burbank's 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
- unchecked
- New Computer Equipment
- unchecked
- Furniture
- unchecked
- New Delivery Truck
- unchecked
- Luxury Auto
- unchecked
c.What is Burbank's maximum cost recovery deduction this year assuming it elects 179 expense and claims bonus depreciation?
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