FED TAX

Please answer the questions above!!

18. On 19 May 2018, Kneel LLC placed in service machinery and equipment (7-year property) with a basis of $3,200,000. Assume that Kneel has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including $179 expensing (but ignoring bonus depreciation). a. $714,410 b. $414,410 c. $314,380 d. $757,280 e. $1,314,380 19. On 1 June 2018, Rex acquired an apartment building and immediately placed it into service as a rental property. Rex's initial basis in building was $480,000 and his initial basis in the land upon which the building sits was $120,000. Determine the amount of Rex's depreciation deduction for 2018 a. $17,453 b. $8,727 C. $6,677 d. $9,456 20. Assume the facts from problem 19. On 30 September 2019 Rex sells the apartment building. Determine the amount of Rex's depreciation for 2020, the year of sale. a. $17.453 d. $5,093 e. $12,363 b. $0 c. $13,090 21. Eccentricity LLC acquired machinery with a basis of $8,000 in December 2017, and it acquired no other property during that year. The machinery has a recovery period of 7 years. Eccentricity elected not to deduct bonus deprecation in 2017 and did not elect section 179 expensing. In June of 2018, Eccentricity sold the machinery. Determine the amount of depreciation Eccentricity may deduct on for the machinery in 2018. a. $285.60 b. $734.70 c. $826.50 d. $1,377.50 e. $979.60 22. Allison purchased machinery on 8 April 218. The relevant costs for the year are as follows: machinery for $10,000, $800 shipping, $50 for delivery insurance, $500 for installation, $750 for sales tax, $150 for the annual tune up, and $200 of property taxes (an annual tax on business property). Determine Allison's initial basis in the marchinery. a. $12,100 b. $12,250 c. $12,300 d. $12,450