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Falcon, Inc. has the following assets in service at the end of 2020: Asset Cost Recovery Period Date placed in service Building 1,000,000 Commercial RE
Falcon, Inc. has the following assets in service at the end of 2020:
Asset | Cost | Recovery Period | Date placed in service |
Building | 1,000,000 | Commercial RE | March 2017 |
Land | 200,000 | Commercial RE | March 2017 |
Furniture and Fixtures | 15,000 | 7 | June 2017 |
Manufacturing Equipment | 80,000 | 7 | April 2018 |
Manufacturing Equipment | 219,000 | 7 | January 2020 |
Transportation Equipment | 795,000 | 5 | August 2020 |
Office Equipment | 70,000 | 7 | December 2020 |
- In 2020 Falcon has taxable income of $10,000,000.
- Falcon did not utilize a 179 deduction or bonus depreciation prior to 2020. They would like to take the 179 deduction, but not bonus depreciation, this year.
Calculate the most beneficial cost recovery for Falcon for 2020.
Now assume Falcon Inc. would like to take bonus depreciation this year.
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