Question
DLW Corporation acquired and placed in service the following assets during the year: Date Cost Asset Acquired Basis Computer equipment 3/1 $ 18,300 Furniture 1/16
DLW Corporation acquired and placed in service the following assets during the year:
Date | Cost | ||
Asset | Acquired | Basis | |
Computer equipment | 3/1 | $ | 18,300 |
Furniture | 1/16 | $ | 18,800 |
Commercial building | 8/26 | $ | 323,000 |
|
Assuming DLW does not elect 179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5 a. What is DLW's year 1 cost recovery for each asset?
b. What is DLW's year 3 cost recovery for each asset if DLW sells all of these assets on 2/22 of year 3?
Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (Use MACRS Table 1 and Table 2.)
Date Placed | Original | ||
Asset | in Service | Basis | |
Machinery | October 25 | $ | 90,000 |
Computer equipment | February 3 | 25,000 | |
Used delivery truck* | August 17 | 38,000 | |
Furniture | April 22 | 175,000 | |
*The delivery truck is not a luxury automobile.
rev: 07_05_2021_QC_CS-268975
Problem 10-53 Part b (Algo)
b. What is the allowable depreciation on Evergreens property in the current year if Evergreen does not elect out of bonus depreciation?
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