DEPRECIATION, ADJUSTED BASIS, AND DISPOSITIONS NewCorp, a calendar year taxpayer, purchased equipment ($100,000) and an office building ($800,000) on August 1, 2018 (the only acquisitions during the year). For financial reporting purposes, depreciation begins on the date of acquisition with the following assumptions: Equipment Building Useful Life 10 years 50 years Method SL SL Salvage Value $10,000 $50,000 The equipment is 7-year MACRS property (NewCorp will not utilize the immediate expense election or additional first-year (bonus) depreciation). Required: 1. 2. Determine book and tax depreciation for 2018 and how the tax data would be reported on Form 1120. NewCorp sells the equipment on April 1, 2020 for $80,000. What is depreciation expense (book and tax) in 2020? What is gain (or loss) for book and tax? How would this information be reported on Form 1120? DEPRECIATION, ADJUSTED BASIS, AND DISPOSITIONS NewCorp, a calendar year taxpayer, purchased equipment ($100,000) and an office building ($800,000) on August 1, 2018 (the only acquisitions during the year). For financial reporting purposes, depreciation begins on the date of acquisition with the following assumptions: Equipment Building Useful Life 10 years 50 years Method SL SL Salvage Value $10,000 $50,000 The equipment is 7-year MACRS property (NewCorp will not utilize the immediate expense election or additional first-year (bonus) depreciation). Required: 1. 2. Determine book and tax depreciation for 2018 and how the tax data would be reported on Form 1120. NewCorp sells the equipment on April 1, 2020 for $80,000. What is depreciation expense (book and tax) in 2020? What is gain (or loss) for book and tax? How would this information be reported on Form 1120