Question
DLW Corporation acquired and placed in service the following assets during the year: Asset Date Acquired Cost Basis Computer equipment 2/28 $ 18,800 Furniture 2/9
DLW Corporation acquired and placed in service the following assets during the year:
Asset | Date Acquired | Cost Basis |
---|---|---|
Computer equipment | 2/28 | $ 18,800 |
Furniture | 2/9 | $ 26,600 |
Commercial building | 10/10 | $ 348,000 |
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.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)
Table 1 MACRS Half-Year Convention
Depreciation Rate for Recovery Period | ||||||
---|---|---|---|---|---|---|
3-Year | 5-Year | 7-Year | 10-Year | 15-Year | 20-Year | |
Year 1 | 33.33% | 20.00% | 14.29% | 10.00% | 5.00% | 3.750% |
Year 2 | 44.45 | 32.00 | 24.49 | 18.00 | 9.50 | 7.219 |
Year 3 | 14.81 | 19.20 | 17.49 | 14.40 | 8.55 | 6.677 |
Year 4 | 7.41 | 11.52 | 12.49 | 11.52 | 7.70 | 6.177 |
Year 5 | 11.52 | 8.93 | 9.22 | 6.93 | 5.713 | |
Year 6 | 5.76 | 8.92 | 7.37 | 6.23 | 5.285 | |
Year 7 | 8.93 | 6.55 | 5.90 | 4.888 | ||
Year 8 | 4.46 | 6.55 | 5.90 | 4.522 | ||
Year 9 | 6.56 | 5.91 | 4.462 | |||
Year 10 | 6.55 | 5.90 | 4.461 | |||
Year 11 | 3.28 | 5.91 | 4.462 | |||
Year 12 | 5.90 | 4.461 | ||||
Year 13 | 5.91 | 4.462 | ||||
Year 14 | 5.90 | 4.461 | ||||
Year 15 | 5.91 | 4.462 | ||||
Year 16 | 2.95 | 4.461 | ||||
Year 17 | 4.462 | |||||
Year 18 | 4.461 | |||||
Year 19 | 4.462 | |||||
Year 20 | 4.461 | |||||
Year 21 | 2.231 |
TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line39 Years (for assets placed in service on or after May 13, 1993)
Month Property Placed in Service | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Year 1 | 2.461% | 2.247% | 2.033% | 1.819% | 1.605% | 1.391% | 1.177% | 0.963% | 0.749% | 0.535% | 0.321% | 0.107% |
Year 239 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 | 2.564 |
Year 40 | 0.107 | 0.321 | 0.535 | 0.749 | 0.963 | 1.177 | 1.391 | 1.605 | 1.819 | 2.033 | 2.247 | 2.461 |
I have other 3 tables , let me know if you need it chegg not letting me add
a. What is DLW's year 1 cost recovery for each asset? Year 1 Asset Cost Recovery Computer equipment $ 3,760 Furniture $ 3,801 Commercial building $ 1,117 Total $ 8,678 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. b. What is DLW's year 3 cost recovery for each asset if DLW sells these assets on 4/20 of year 3? Year 3 Asset Cost Recovery Computer equipment $ 1,805 Furniture $ 2,326 Commercial building $ 372 X Total $ 4,503 * Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deductedStep by Step Solution
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