Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please see attached questions. There are two problems. Thank you Vanessa owns a consulting business that has always been reported as a sole proprietorship on

image text in transcribed

Please see attached questions. There are two problems. Thank you

image text in transcribed Vanessa owns a consulting business that has always been reported as a sole proprietorship on her tax return. Assume that on February 19, 2016 Vanessa purchases a new computer for $5,000 that will be used solely for her business. Using the depreciation table below compute her depreciation expense for 2016. Assume no bonus depreciation and no Section 179 depreciation. Cost of asset Depreciation % from Table Months deemed owned in 2016 Regular MACRS Depreciation for 2016 Assume that Vanessa sells this computer on August 3, 2018. What would MACRS depreciation be for the computer for 2018? MACRS Depreciation MACRS Accelerated Depreciation Table Recove ry Year Property Class 3-year 5-year 7-year 33.33 20.00 14.29 % % % 44.45 32.00 24.49 14.81 19.20 17.49 7.41 11.52 12.49 11.52 8.93 5.76 8.92 8.93 4.46 1 2 3 4 5 6 7 8 Cola, Inc. purchased all of its personalty (equipment) in the fourth quarter of its tax year. Provide the IRC Section and subsection that indicates the convention that applies when computing MACRS depreciation in this situation. Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. IRC Examples of correctly formatted IRC responses are IRC1(a),IRC12(a),IRC12A(a),IRC12AA(a),IRC123(a), IRC123A(a),IRC1234(a),IRC1234A(a), and IRC1234A-5(a)

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_2

Step: 3

blur-text-image_3

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

Fundamental Managerial Accounting Concepts

Authors: Thomas P Edmonds, Philip R Olds

9th Edition

1259969509, 9781259969508

More Books

Students also viewed these Accounting questions

Question

Speak clearly and distinctly with moderate energy

Answered: 1 week ago

Question

Get married, do not wait for me

Answered: 1 week ago