Question
Patrick Mahomes acquires the following new five-year class property in 2020 for his business. Use $1,040,000 as the maximum 179 amount: Asset Acquisition Date Cost
- Patrick Mahomes acquires the following new five-year class property in 2020 for his business. Use $1,040,000 as the maximum 179 amount:
| Asset | Acquisition Date | Cost |
| A | March 10 | $960,000 |
| B | May 16 | 100,000 |
| C | October 20 | 950,000 |
|
|
|
|
Patrick elects 179 for Asset A first and then Asset B. Patricks taxable income for his business does not create a limitation for purposes of the 179 deduction. Patrick elects to not take the additional first-year depreciation.
a. State the MACRS convention that Patrick will use in his calculations and explain why.
b. Determine Patricks depreciation deduction for each asset for 2020.
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Sawyers Internal Auditing Enhancing And Protecting Organizational Value
Authors: The Internal Audit Foundation
7th Edition
1634540522, 9781634540520
