Naples Corporation sold the following assets in 2021: (Click the icon to view the data.) (Click the icon to view the MACRS half-year convention rates.) (Click the icon to view the MACRS straight-line rates for 39-year property.) (Click the icon to view the Luxury Automobile Depreciation Limits.) Requirements a. What is the depreciation deduction for each asset in 2021? b. Compute the gain or loss on each asset sold. - X Reference Requirement a. What is the depreciation deduction for each asset in 2021? (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest dollar.) Asset 2021 Depreciation Automobile Equipment Building Data table Total Luxury Automobile Depreciation Limits Year Automobile is placed in Service 2020 2018 2012-2017 2010-2011 Maximum Allowable Depreciation (100% Business Use): Year 1 $10,100 or $10,000 or $3,160 or $3,060 or $18.100 $18,000** $11,160*** $11,060**** Year 2 $16.100 $16,000 5,100 4,900 Year 3 $9,700 $9,600 3,050 2,950 Year 4 and Each $5,760 $5,760 1,875 1,775 Suceeding Year *$18,100 in Year 1 (2019) if taxpayer claims bonus depreciation **$18,000 in Year 1 (2018) if taxpayer claims bonus depreciation. ***11,160 in Year 1 (2017, 2016, 2015, 2014, 2013, or 2012) if taxpayer claims bonus depreciation ****$11,060 in Year 1 (2011 or 2010) if taxpayer claims bonus depreciation. Date Acquired Date Sold Original Cost Basis Depreciation/ Recovery Cost-Recovery Period Method (Years) Sales Price Automobile 1/1/18 $ 9,500 5 $ 1,800 12/1/21 9/1/21 MACRS MACRS 1/6/18 23,000 7 11,000 Equipment Building (nonresidental) 4/1/11 12/10/21 175,000 MACRS 39 270.000 TAX AUTHORITY UPDATE At the time this edition went to print the IRS had not yet released the 2021 ceiling limits. For this problem we assume the limits will be the same for 2021 as they were in 2020. "The half-year convention was used in the year of acquisition. Naples did not claim Sec. 179 expense or bonus depreciation during the acquistion years. Print Done Print Done MACRS half-year convention rates.) Reference MACRS straight-line rates for 39-year property.) Luxury Automobile Depreciation Limits.) reach asset in 2021? set sold. on deduction for each asset in 2021? (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest dollar.) - X Reference 11.52 4.888 General Depreciation SystemMACRS Nonresidential Real Property Placed in Service After 5/12/93 Applicable Recovery Period: 39 years Applicable Depreciation Method: Straight Line Month in the First Recovery Year the Property Is Placed in Service and Depreciation Rate Recovery Year 1 2 3 4 5 6 7 8 9 10 Year 1 2.461 2.247 2.033 1.391 1.177 0.963 0.749 0.535 Years 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 General Depreciation System-MACRS Personal Property Placed in Service After 12/31/86 Applicable Convention: Half-Year Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line Recovery period and Depreciation Rates Recovery Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33 20.00 14.29 10.00 5.00 3.750 Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 8.93 6.55 5.90 Year 8 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 5.90 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 Year 19 4.462 Year 20 Year 21 2.231 11 1.605 4.461 1.819 0.321 2.564 2.247 12 0.107 2.564 2.461 4.461 4.461 Print Done Naples Corporation sold the following assets in 2021: (Click the icon to view the data.) (Click the icon to view the MACRS half-year convention rates.) (Click the icon to view the MACRS straight-line rates for 39-year property.) (Click the icon to view the Luxury Automobile Depreciation Limits.) Requirements a. What is the depreciation deduction for each asset in 2021? b. Compute the gain or loss on each asset sold. - X Reference Requirement a. What is the depreciation deduction for each asset in 2021? (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest dollar.) Asset 2021 Depreciation Automobile Equipment Building Data table Total Luxury Automobile Depreciation Limits Year Automobile is placed in Service 2020 2018 2012-2017 2010-2011 Maximum Allowable Depreciation (100% Business Use): Year 1 $10,100 or $10,000 or $3,160 or $3,060 or $18.100 $18,000** $11,160*** $11,060**** Year 2 $16.100 $16,000 5,100 4,900 Year 3 $9,700 $9,600 3,050 2,950 Year 4 and Each $5,760 $5,760 1,875 1,775 Suceeding Year *$18,100 in Year 1 (2019) if taxpayer claims bonus depreciation **$18,000 in Year 1 (2018) if taxpayer claims bonus depreciation. ***11,160 in Year 1 (2017, 2016, 2015, 2014, 2013, or 2012) if taxpayer claims bonus depreciation ****$11,060 in Year 1 (2011 or 2010) if taxpayer claims bonus depreciation. Date Acquired Date Sold Original Cost Basis Depreciation/ Recovery Cost-Recovery Period Method (Years) Sales Price Automobile 1/1/18 $ 9,500 5 $ 1,800 12/1/21 9/1/21 MACRS MACRS 1/6/18 23,000 7 11,000 Equipment Building (nonresidental) 4/1/11 12/10/21 175,000 MACRS 39 270.000 TAX AUTHORITY UPDATE At the time this edition went to print the IRS had not yet released the 2021 ceiling limits. For this problem we assume the limits will be the same for 2021 as they were in 2020. "The half-year convention was used in the year of acquisition. Naples did not claim Sec. 179 expense or bonus depreciation during the acquistion years. Print Done Print Done MACRS half-year convention rates.) Reference MACRS straight-line rates for 39-year property.) Luxury Automobile Depreciation Limits.) reach asset in 2021? set sold. on deduction for each asset in 2021? (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest dollar.) - X Reference 11.52 4.888 General Depreciation SystemMACRS Nonresidential Real Property Placed in Service After 5/12/93 Applicable Recovery Period: 39 years Applicable Depreciation Method: Straight Line Month in the First Recovery Year the Property Is Placed in Service and Depreciation Rate Recovery Year 1 2 3 4 5 6 7 8 9 10 Year 1 2.461 2.247 2.033 1.391 1.177 0.963 0.749 0.535 Years 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 General Depreciation System-MACRS Personal Property Placed in Service After 12/31/86 Applicable Convention: Half-Year Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line Recovery period and Depreciation Rates Recovery Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33 20.00 14.29 10.00 5.00 3.750 Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 8.93 6.55 5.90 Year 8 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 5.90 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 Year 19 4.462 Year 20 Year 21 2.231 11 1.605 4.461 1.819 0.321 2.564 2.247 12 0.107 2.564 2.461 4.461 4.461 Print Done