Question
Mia Corporation (a calendar-year corporation) purchased and placed in service the following assets during 2019: Date Acquired Asset Description Cost 18-Feb Warehouse $3,450,000 2-Jun Used
Mia Corporation (a calendar-year corporation) purchased and placed in service the following assets during 2019:
Date Acquired | Asset Description | Cost |
18-Feb | Warehouse | $3,450,000 |
2-Jun | Used Furniture | 180,000 |
18-Aug | Used Computer Equipment | 320,000 |
20-Sep | Used Machinery | 2,050,000 |
15-Dec | Used Office Equipment | 875,000 |
All assets are used 100% for business use. The $3,450,000 cost of the warehouse consists of $1,000,000 for the land and $2,450,000 for the building. The corporation has $3,000,000 income from operations before calculating depreciation deductions in 2019 and $3,500,000 in 2020. No assets were purchased or sold in 2020. If Section 179 applies, the companys tax strategy is to use Section 179 on any computer equipment purchased.
Required:
- Calculate the total depreciation deduction in 2019.
- Calculate the total depreciation deduction in 2020.
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