Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello, please help me with this! Im completely lost!!! I will upvote! Problem 8-40 (Algorithmic) (LO. 2, 3, 9) On May 31, 2021, Javier Sanchez

Hello, please help me with this! Im completely lost!!! I will upvote!

image text in transcribed

image text in transcribed

image text in transcribed

Problem 8-40 (Algorithmic) (LO. 2, 3, 9) On May 31, 2021, Javier Sanchez purchased and placed in service a new 7-year class asset costing $410,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Rather than using bonus depreciation, Javier would like to use 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost. During 2021 , his business generated a net income of $492,000 before any 179 immediate expense election. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deductions (including first-year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2021 and 2022 . Total cost recovery deduction in 2021: \$ Total cost recovery deduction in 2022: s b. Complete Javier's Form 4562 (page 1) for 2021. Note: For 2021 , the maximum 179 is $1,050,000 and the threshold amount is $2,620,000. If an amount is zero, enter "0". Enter amounts as positive numbers. 7 Listed property. Enter the amount from line 29 Note: Don't use Part II or Part III below for listed property. Instead, use Part V. Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. See instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions). 15 Property subject to section 168(f)(1) election. Part III MACRS Depreciation (Don't include listed property. See instructions.) Section A \begin{tabular}{ll|l} \hline 17 MACRS deductions for assets placed in service in tax years beginning before 2021 & \\ 18 & If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check \\ here \end{tabular} Section B-Assets Placed in Service During 2021 Tax Year Using the General Depreciation System Section C-Assets Placed in Service During 2021 Tax Year Using the Alternative Depreciation System Part IV Summary (See instructions.) 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column ( g ), and line 21 . Enter here and on the appropriate lines of your return. Partnerships and s corporations-see instructions ...................... 22 . 23 For assets shown above and placed in service during the current year, enter the portion of the basis For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 12906N Form 4562 (2021)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

External Quality Audit Has It Improved Quality Assurance In Universities

Authors: Mahsood Shah, Chenicheri Sid Nair

1st Edition

1843346761, 978-1843346760

More Books

Students also viewed these Accounting questions