Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How to figure out the MACRS deductions for assets placed in service in tax years beginning before 2018 for form 4562 Sherrys bookkeeper has provided

How to figure out the MACRS deductions for assets placed in service in tax years beginning before 2018 for form 4562

Sherrys bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. No Section 179 election is made. For tax purposes, Sherry elected out of bonus depreciation in all years except 2018.

Sherrys bookkeeper has provided the following book-basis fixed asset rollforward:

Hopson Retail Fixed Asset Rollforward 12/31/2018 (book basis)
DEPR COST 2016 2017 2018 ACCUM NET BOOK
ASSET IN SERVICE METHOD LIFE BASIS DEPR DEPR DEPR DEPR VALUE
CASH REGISTER 2/15/2016 SL 5 9,800.00 1,796.67 1,960.00 1,960.00 5,716.67 4,083.33
2016 TOTAL ADDITIONS 9,800.00 1,796.67 1,960.00 1,960.00 5,716.67 4,083.33
RETAIL FIXTURES 10/12/2017 SL 7 4,500.00 160.71 642.86 803.57 3,696.43
FURNITURE 10/12/2017 SL 7 3,600.00 128.57 514.29 642.86 2,957.14
2017 TOTAL ADDITIONS 8,100.00 - 289.28 1,157.15 1,446.43 6,653.57
TOTAL 17,900.00 1,796.67 2,249.28 3,117.15 7,163.10 10,736.90
DELIVERY TRUCK 6/1/2018 SL 5 32,000.00 3,733.33 3,733.33 28,266.67
DESK AND CABINETRY 6/1/2018 SL 7 17,000.00 1,416.67 1,416.67 15,583.33
COMPUTER 6/1/2018 SL 5 3,500.00 408.33 408.33 3,091.67
2018 TOTAL ADDITIONS 52,500.00 - - 5,558.33 5,558.33 46,941.67
TOTAL 70,400.00 1,796.67 2,249.28 8,675.48 12,721.43 57,678.57

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

Finance And Financial Intermediation

Authors: Harold L. Cole

1st Edition

0190941707, 978-0190941703

More Books

Students also viewed these Finance questions

Question

Acceptance of the key role of people in this process of adaptation.

Answered: 1 week ago

Question

preference for well defined job functions;

Answered: 1 week ago