Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chaz Corporation has taxable income in 2016 of $437,000 before the 179 expense and acquired the following assets during the year: Placed in Asset Service

Chaz Corporation has taxable income in 2016 of $437,000 before the 179 expense and acquired the following assets during the year:

Placed in

Asset

Service

Basis

Office furniture

September 12

$

1,130,000

Computer equipment

February 10

906,000

Delivery truck

August 21

53,000

Total

$

2,089,000

What is the maximum total depreciation expense that Chaz may deduct in 2016? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your answer to the nearest whole dollar amount.)

Maximum Total Depreciation Expense $______________

image text in transcribed \fTABLE 23 MAtI-t Mid-Duortor Convention: For property pieced in service during the first querter Depreciation Rate for Recovery Period 'i'nr E-ynr T-yonr 1 35.0053 25.0035 2 25.00 21.43 3 15.50 15.31 4 11.01 10.33 5 11.01 3.?5 5 1.33 3.?4 ? 3.?5 3 1.03 TABL E 2') Nina-15 Mid-Dunner Convention: For property pieced in service during the second querter Depreciation Rate for Recovery Period 'iha r E-yoar 'i-yolr 1 25.00% 113535 2 30.00 23.4? 3 13.00 15.?5 4 11.3? 11.3? 5 11.3? 3.3? 5 425 3.3? ? 3.3? 3 3.34 TABL E 20 MAGRE Mid-Duo rtor Convention: For property pieced in service during the third querter Depreciation Rate for Recovery Period You E-yoar 1er 1 15.0055 10.?135 2 3400 25.51 3 20.40 13.22 4 12.24 13.02 5 11.30 3.30 5 ?.05 3.35 ? 3.35 3 5.53 TABLE 21:] MAWE-Mid Quarter Convention: For property pieced in service during the fourth quarter Depreciation Rate for Recovery Period Your E-yoar 'i-ynlr 1 5.00% 3.5?35 2 33.00 2?.55 3 22.30 13.53 4 13.53 1405 5 10.34 10.04 5 3.53 3.?3 ? 3.?3 3 ?.54 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line31.5Years \"or assets placed in service before May 13, 1993] Month Property Placed in Service bar 1 2 3 4 5 5 1 s a 10 11 12 1 3.042% 2.11311. 2.51390 2.24395 1.354115 1.120% 1.45591, 1.10031. 0. 52595 0.55191. 0.33190 313291. 21 3.115 3.115 3.115 3.115 3.115 3.115 3.115 3.115 3.115 3.115 3.115 3.115 3 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.115 3.115 3.115 3.115 3.115 9 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 10 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 11 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 12 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 13 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 14 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3114 3.115 3.114 15 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3115 3.114 3.115 15 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 11 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 15 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 13 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 20 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 21 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 22 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 23 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 24 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 25 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 25 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 21 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 25 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 23 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 30 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 31 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 32 1.120 1.054 2.243 2.513 2.115 3.042 3.115 3.114 3.115 3.114 3.115 3.114 33 0.132 0.391 0.551 0.025 1.190 1.455 AB LE 5 Nenmidentinl Real Property Mid-Month Convention Straight Line-SBYears {for assets placed in service on or aner May 13, 1993) Month property placed in service 9' TD 12 2.461% 2.24791: 2.033% 1.819% 1.39155 1.1??91: 0.9%\": 0.749% 0.535% 0.32195 0.107% 2.564 2.564 2.564 2.554 2.534 2.554 2.564 2.564 2.584 2.564 2.554 0.10? 0.321 0.535 0. 749 1.17? 1.391 1.605 1.519 2.033 2.24? 2.451

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Law, Business And Society

Authors: Tony McAdams, Kiren Dosanjh Zucker, Kristofer Neslund, Kari Smoker

12th Edition

1259721884, 978-1259721885

More Books

Students also viewed these Accounting questions

Question

2. Find five metaphors for communication.

Answered: 1 week ago