Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Old MathJax webview I need help filling these out and if you could explain so I can understand better, would be appreciated. roblem 8-11 Todified

Old MathJax webview

image text in transcribed

image text in transcribed

image text in transcribed

I need help filling these out and if you could explain so I can understand better, would be appreciated.

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

roblem 8-11 Todified Accelerated Cost Recovery System (MACRS), Listed Property, Limitation on Depreciation of Luxury Automobiles (LO 8.2, 3 uring 2020, Pepe Guardio purchases the following property for use in his calendar year-end manufacturing business: Item Date Acquired Cost Manufacturing equipment (7 year) June 2 $50,000 Office furniture September 15 8,000 Office computer November 18 2,000 Passenger automobile (used 85 percent for business) May 31 55,000 Warehouse July 23 Building 170.000 Land 185 000 Pepe uses the accelerated depreciation method under MACRS, if available, and does not make the election to expense and elects ou Jse Form 4562 to report Pepe's depreciation expense for 2020 Enter all amounts as positive numbers. If required, round to the nearest dollar. If an amount is zero, enter "0". Click on the following links to access: Depreciation tables Annual automobile depreciation limitations Table 8.1. Recovery Periods for Assets Placed in Service After 1986. Form 4562 eus Department of the Treasury Internal Revenue Service (99) Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Go to HWRgouromi 562 for instructions and the latest information. check here Section B-Assets placed in Service During 2020 Tax Year Using the General Depreciation System Classification of property (c) Basis for depreciation (b) Month and year business/investment use only see placed in service instructions) (d) Recovery ke) Voorvention Method (g) Depreciatia deduction period 3-year property 5-year property 2,000 6S 200DB 400 -year property 58,000 Z US HYUNG 200 DB 10-year property 15-year property 20-year property 25-year property 25 yrs. S/L Residential rental 27.5 yrs MM S/E property 27.5 yrs. MM S/E Nonresidential real 07/20 170,000 39 yrs MM SL property MM S/L Section C-Assets Placed in Service During 2020 Tax Year Using the Alternative Depreciation System class life S/L year 12 yrs. S/L 30-year 30 yrs MM S/L 40-year 40 yrs MM S/L TIV Summary (See instructions.) Listed property. Enter amount from line 28 21 Total. Add amounts from line 12, lines 14 through 17. lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporationssee instructions 22 For assets shown above and placed in service during the current year, enter the portion of the basis tieto contin962A cncta (a) (b (c) (d) (e) () (g) (h) Business/ investment Elected Type of property (list vehicles Date placed in service Cost or other basis Basis for depreciation (business/ investment use only) Recovery period Method/ Depreciation Convention deduction section 1 first) use cost percentage 25 25 Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 50% in a qualified business use. See instructions. 26 Property used more than 50% in a qualified business use: Passenger automobile 05/20 85 % 55,000 5 yrs. HY % 27 Property used 50% or less in a qualified business use: 076 S/L- S/L - 00 S/L - 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 ...... 28 29 Add amounts in column (0), line 26. Enter here and on line 7, page 1 ........ 29 Section B-Information on Use of Vehicles Recovery Year 3-Year (200% DB) 5-Year (200 DB) 7-Year (200% DB) 10-Year (200% DB) 15-Year (150% DB) 20-Year (150% DB) 33.33 1 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 7.219 9.50 3 14.81 * 19.20 17.49 8.55 6.677 14.40 11.52 4 7.41 11.52 * 12.49 7.70 6.177 11.52 8.93 * 9.22 6.93 5.713 5.285 6 5.76 8.92 7.37 6.23 8.93 6.55 5.90 * 4.888 8 4.46 5.90 4.522 6.55 6.56 9 5.91 4.462 * 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 4.461 18 19 4.462 20 4.461 21 2.231 *Switch to straight-line depreciation. TABLE 8.3 Straight-Line Depreciation for Personal Property, Assuming Half-Year Convention* (For Property Placed in Service after December 31, 1986) Recovery % First Other Recovery Years Years % Last Recovery Years Year % Period Recovery Year 16.67 2-3 33.33 4 16.67 10.00 2-5 20.00 6 10.00 7.14 2-7 14.29 8 7.14 3-year 5-year 7-year 10-year 15-year 20-year 5.00 2-10 10.00 11 5.00 3.33 2-15 6.67 16 3.33 2.50 2-20 5.00 21 2.50 *The official table contains a separate row for each year. For ease of presentation, certain years are grouped together in this table. In some instances, this will cause a difference of .01 percent for the last digit when compared with the official table. Straight-Line Depreciation for Real Property Assuming Mid-Month Convention* 27.5-Year Residential Real Property The applicable annual percentage is (use the column for the month in the first year the property is placed in service): Recovery Year(s) 7 8 9 10 11 12 5 6 1 4 2. 3 3.182 2.576 1.970 1.667 3.485 2.879 2.273 0.758 0.152 1 1.364 1.061 0.455 2-18 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 19-27 3.637 3.637 3.637 3.637 3.637 2.273 0.000 3.637 1.970 0.000 3.637 2.879 3.637 3.485 3.637 3.636 3.637 3.636 28 3.637 3.636 2.576 3.182 3.636 3.636 0.152 3.636 1.667 0.000 29 0.000 0.000 0.000 0.455 0.758 1.061 1.364 39-Year Nonresidential Real Property The applicable annual percentage is (use the column for the month in the first year the property is placed in service): Recovery Year(s) 1 2 4 5 9 10 11 12 1 2.461 2.247 2.033 1.819 1.605 1.391 1.177 0.963 0.749 0.535 0.321 0.107 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 2.461 *The official tables contain a separate row for each year. For ease of presentation, certain years are grouped together in these two tables. In some instances, this will produce a difference of .001 percent when compared with the official tables. ANNUAL AUTOMOBILE DEPRECIATION LIMITATIONS 2019 and 2020 Limits Year of Use Year 1 $18,100% Year 2 16.100 Year 3 9,700 5,760 Year 4 (and subsequent years until fully depreciated) * Additional bonus depreciation of $8,000 is included in this amount

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

Financial Accounting A User Perspective

Authors: Robert E. Hoskin, Maureen R. Fizzell, Donald C. Cherry

4th Canadian Edition

0470834455, 978-0470834459

More Books

Students also viewed these Accounting questions

Question

Distinguish between HRD and human resource management (HRM)

Answered: 1 week ago

Question

Define what the four-fifths rule is.

Answered: 1 week ago