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please help with part b! i will make sure to thumbs up, thank you Richardson Corporation uses the calendar year as its tax year. It
please help with part b! i will make sure to thumbs up, thank you
Richardson Corporation uses the calendar year as its tax year. It acquires and places into service two depreciable assets during 2019: Asset #1: 7-year property; $955,000 cost; placed into service on January 20. Asset #2: 5-year property; $440,000 cost; placed into service on August 1. (Click the icon to view the MACRS half-year convention rates.) Read the requirements. 2020 Depreciation 233,880 Asset #1 Asset #2 140,800 374,680 Total depreciation b. What are Richardson's depreciation deductions for 2019 and 2020 if this is the only property it places into service in those years and Richardson elects Sec. 179 expensing for the assets and does not elect out of bonus depreciation? (Assume that Richardson takes the Sec. 179 deduction on Asset #1 first. Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar. Complete all input fields. Enter a "0" no depreciation is taken.) Begin by determining Richardson's depreciation deduction for 2019 if it elects Sec. 179 expensing and does not elect out of bonus depreciation for the assets. Asset #1 Asset #2 Total 2019 Sec. 179 expense Bonus depreciation MACRS depreciation Total depreciation 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 9.50 24.49 17.49 7.219 6.677 Year 3 14.81 18.00 14.40 11.52 19.20 8.55 Year 4 7.41 11.52 12.49 7.70 6.177 Year 5 11.52 8.93 9.22 5.713 Year 6 5.76 8.92 7.37 5.285 6.93 6.23 5.90 5.90 Year 7 8.93 6.55 4.888 Year 8 4.46 6.55 4.522 4.462 5.91 Year 9 Year 10 Year 11 6.56 6.55 3.28 5.90 5.91 5.90 4.461 4.462 4.461 4.462 Year 12 Year 13 5.91Step by Step Solution
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