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Income Taxation please help American taxation (specifically New York) Compute the allowable MACRS, section 179 and special first year write-off for Good Corp. (GC). GC

Income Taxation please help American taxation (specifically New York)

Compute the allowable MACRS, section 179 and special first year write-off for Good Corp. (GC). GC elected all write-offs unless indicated otherwise. Use exhibit 10-3 on page 10-9 for MACRS period if it is not stated in given facts.

3.1a In June 2018 GC purchased a new machine to fabricate metal products in its production system. Cost was 3.4 million. What is total allowable write-off for 2018, 2019 and 2020.

3.1b In December 2020 GC decided to buy the metal products instead of manufacturing them and sold the machine for 1,250,000. Compute basis in machine and gain or loss on sale.

3.2a In September 2019 GC purchased five fork-lifts (five-year items). Cost 200,000 each (total 1 million). GC declined section 179 and special first year write off on these items.

In 2021 GC sold one of the fork lifts for 85,000.

What is MACRS amounts for GC for all fork lifts until they are completely written off.

3.2b What is gain or loss, if any on sale of fork lift in 2021? Is it capital or ordinary, long term or short term?

3.3 In November 2020 GC purchased a new computer system, cost 1,800,000. Because of operating losses from Corona virus GC declined special first year write off only.

Compute allowable write off for the computer system for 2020 and 2021.

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