Conglomerate Inc. (Federal ID: 7946138520) is a company that has been operating since July 1, 2014. Given below are details of assets that were placed into service by Conglomerate sinceit began operations. Asset Date Placed into Service Basis / Cost Asset A (barge) 4/15/2017 $ 25,000 Asset B (office furniture) 7/31/2017 $100,000 Asset C (tractor unit for the road) 10/31/2019 (acquired 10/1/19) $600,000 Asset D (computers) 11/15/2019 (acquired 11/5/19) $200,000 Asset E (patent acquired) 11/1/2016 $ 50,000 Start-Up costs 7/1/2014 (date business started) $ 75,000 Goodwill (self-created) 7/1/2014 (date business started) $250,000 Conglomerate's taxable income for 2019 before considering $179 expenses is $300,000. Note that any elected $179 or bonus depreciation expense amounts are claimed on assets placed into service in tax year 2019 only because 2019 is their first year ofuse). Assume the $179 election is applied to Asset C only, then apply bonus then MACRS (if applicable) on the 2019 assets. Also assume that assets placed into service before 2019 have not been (and are not) subject to $179 or bonus depreciation. Instructions and Deliverables Please hand in the following 1. Calculations showing the 2019 cost recovery deduction for Conglomerate Inc. Ensure your calculation has the following: (15 points) i. Section 179 expenses ii. Bonus depreciation iii. MACRS amounts for all applicable assets iv. Amortization of all applicable assets Note: Maximize the total deduction amount, regardlessif it might create an NOL for Conglomerate. 2. Complete the Form 4562 for this taxpayer for the year ended December 31, 2019. Ignore Part V of this Form. Please use the 2018 form. Simply assume that any reference to 2018 actually refers to 2019. (10 points) 3. A brief explanation of (5 points) a. The convention(s) used. b. Cost recovery not taken for any asset. c. How you used Sec. 179 and bonus depreciation together, and whether there is any unused Section 179 amount that can be carried forward to the next year. Conglomerate Inc. (Federal ID: 7946138520) is a company that has been operating since July 1, 2014. Given below are details of assets that were placed into service by Conglomerate sinceit began operations. Asset Date Placed into Service Basis / Cost Asset A (barge) 4/15/2017 $ 25,000 Asset B (office furniture) 7/31/2017 $100,000 Asset C (tractor unit for the road) 10/31/2019 (acquired 10/1/19) $600,000 Asset D (computers) 11/15/2019 (acquired 11/5/19) $200,000 Asset E (patent acquired) 11/1/2016 $ 50,000 Start-Up costs 7/1/2014 (date business started) $ 75,000 Goodwill (self-created) 7/1/2014 (date business started) $250,000 Conglomerate's taxable income for 2019 before considering $179 expenses is $300,000. Note that any elected $179 or bonus depreciation expense amounts are claimed on assets placed into service in tax year 2019 only because 2019 is their first year ofuse). Assume the $179 election is applied to Asset C only, then apply bonus then MACRS (if applicable) on the 2019 assets. Also assume that assets placed into service before 2019 have not been (and are not) subject to $179 or bonus depreciation. Instructions and Deliverables Please hand in the following 1. Calculations showing the 2019 cost recovery deduction for Conglomerate Inc. Ensure your calculation has the following: (15 points) i. Section 179 expenses ii. Bonus depreciation iii. MACRS amounts for all applicable assets iv. Amortization of all applicable assets Note: Maximize the total deduction amount, regardlessif it might create an NOL for Conglomerate. 2. Complete the Form 4562 for this taxpayer for the year ended December 31, 2019. Ignore Part V of this Form. Please use the 2018 form. Simply assume that any reference to 2018 actually refers to 2019. (10 points) 3. A brief explanation of (5 points) a. The convention(s) used. b. Cost recovery not taken for any asset. c. How you used Sec. 179 and bonus depreciation together, and whether there is any unused Section 179 amount that can be carried forward to the next year