Compute the 2018 depreciation expense using the attached Excel spreadsheet. Assume that the business has sufficient income to support S179 expensing
On March 20, 2018, Phil moved his business out of his old offices and into a newly constructed and equipped office. Phil sold his old office building and all of its furnishings. Accum. Deprec. Date Acquired Asset Sales Price Cost Jan 1, 2018 5/1/12 Office Building $940,000 $900,000 $129,825 5/1/12 Land 150,000 100,000 7/1/12 Furniture 50,000 239,000 206,998 8/13/14 Furniture 10,000 324,000 222,782 4/12/15 Office equipment 100,000 120,000 67,524 5/13/16 Computers 30,000 50,000 10,000 Phil computes his cost recover using MACRS. He would like to use S179 immediate expensing but has elected not to use any bonus depreciation. Phil's expenditures for the new office are: Date Acquired March 20 March 20 March 20 April 1 June 1 Asset Land Office building Furniture Computer system Artwork Cost $ 300,000 2,500,000 200,000 350,000 150,000 Compute the 2018 depreciation expense using the attached Excel spreadsheet. Assume that the business has sufficient income to support S179 expensing. Assets Sold Accumulated Depreciation as of Beginning of the Year $129,825 CY Depreciation Adjusted basis Date Acquired Asset 12/5/1 Office building 12/5/1 Land 12/7/1 Furniture 14/8/13 Furniture 15/4/12 Office equipment 17/5/13 Computers Sales Price $940,000 200.000 50,000 10,000 100,000 30,000 Original Cost $900,000 100.000 239,000 324,000 120,000 50,000 206.998 222.7821 67,524 10,000 Basis for MACRS CY Depreciation New Assets: Date Acquired Asset 20-MarLand 20-Mar Office building 20-Mar Furniture 1-Apr Computer system Cost $300,000 2,500,000 200,000 350,000 Total Depreciation On March 20, 2018, Phil moved his business out of his old offices and into a newly constructed and equipped office. Phil sold his old office building and all of its furnishings. Accum. Deprec. Date Acquired Asset Sales Price Cost Jan 1, 2018 5/1/12 Office Building $940,000 $900,000 $129,825 5/1/12 Land 150,000 100,000 7/1/12 Furniture 50,000 239,000 206,998 8/13/14 Furniture 10,000 324,000 222,782 4/12/15 Office equipment 100,000 120,000 67,524 5/13/16 Computers 30,000 50,000 10,000 Phil computes his cost recover using MACRS. He would like to use S179 immediate expensing but has elected not to use any bonus depreciation. Phil's expenditures for the new office are: Date Acquired March 20 March 20 March 20 April 1 June 1 Asset Land Office building Furniture Computer system Artwork Cost $ 300,000 2,500,000 200,000 350,000 150,000 Compute the 2018 depreciation expense using the attached Excel spreadsheet. Assume that the business has sufficient income to support S179 expensing. Assets Sold Accumulated Depreciation as of Beginning of the Year $129,825 CY Depreciation Adjusted basis Date Acquired Asset 12/5/1 Office building 12/5/1 Land 12/7/1 Furniture 14/8/13 Furniture 15/4/12 Office equipment 17/5/13 Computers Sales Price $940,000 200.000 50,000 10,000 100,000 30,000 Original Cost $900,000 100.000 239,000 324,000 120,000 50,000 206.998 222.7821 67,524 10,000 Basis for MACRS CY Depreciation New Assets: Date Acquired Asset 20-MarLand 20-Mar Office building 20-Mar Furniture 1-Apr Computer system Cost $300,000 2,500,000 200,000 350,000 Total Depreciation
