Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Only need help with part C Andrew, a cash method tax payer, starts his company (an LLC) in 2020. Since his company is new, he

Only need help with part C

image text in transcribed

Andrew, a cash method tax payer, starts his company (an LLC) in 2020. Since his company is new, he has to purchase a many item for the business. Below are the list of items Andrew purchased in 2020: Note Date Purchase 1/03/2020 2/5/2020 6/7/2020 11/29/2020 Item Office furniture Computers Equipment Car Cost $20,000 $10,000 $100,000 $25,000 To use as the delivery vehicle a) What is Andrew total depreciation expenses in 2020? (Provide detailed calculations/explanations for possible partial credit) b) Assuming that Andrew cannot take any $179 deduction and Bonus depreciation, what is Andrew total depreciation expenses in 2020 for the items above? (Provide detaile calculations/explanations for possible partial credit) c) Andrew wrote you an email yesterday saying that he forgot to mention a few other expenditures in 2020. Those items are below: . Legal cost + fees to establish the LLC: $5,000, paid in 1/1/2020 Warehouse rent: $18,000, paid in 06/31/2020 (the day that Andrew signed the rental contract). Andrew must pay the rent for 18 months ahead of time according to the contract. Ignore the other deduction in part a or b, how much deduction can Andrew claim for these new items in 2020

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

Principles Of Managerial Finance

Authors: Lawrence J Gitman, Chad J Zutter

7th Edition

0133546403, 9780133546408

More Books

Students also viewed these Finance questions

Question

In what ways can confl ict enrich relationships?

Answered: 1 week ago

Question

How do listening and hearing diff er?

Answered: 1 week ago

Question

How does eff ective listening diff er across listening goals?

Answered: 1 week ago