Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How would this information go on form 4562? (using more than 1) starting the motorcycle repair business. Shannon started her new business on 11/1/2019. During

How would this information go on form 4562? (using more than 1)

image text in transcribed

starting the motorcycle repair business. Shannon started her new business on 11/1/2019. During 2020, she received cash payments totaling $69,000 from customers, and paid the following expenditures in connection with her business: Cost of an engine diagnostic machine (5-year property) $ 20,000 Cost of new equipment (7-year property) 14,000 Cost of new tools (5-year property) 6,000 Supplies 3,000 Advertising fees 2,900 Liability insurance premiums 2,500 For the diagnostic machine, Shannon elected not to expense any portion of the cost allowed under the provisions of $ 179, but rather elected to take the maximum allowed depreciation. For the new equipment, Shannon elected to take the maximum $ 179 expense allowed. For the new tools, Shannon elected to take MACRS depreciation rather than either $ 179 expense or additional first- year (bonus) depreciation. The diagnostic machine, plus the new equipment, were placed into service on 2/1/2020. The new tools were placed into service on 1/1/2020. The diagnostic machine, equipment, and tools are used exclusively for business purposes

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

Students also viewed these Accounting questions