Publications and annexes Instructions Part I. Internal Revenue Service Publication 534 and Publication 946

As determined by the Internal Revenue Service in its publications 534 and 946, available in the required resources of this module, determine the following for each case:

a. The amount of depreciation allowed for this taxable year if section 179 is not considered. b. The amount of depreciation allowed for this taxable year if section 179 is considered.

Case 1: Kevin Ramrez Kevin Ramrez is married. He and his wife make separate contributions. In this taxable year, Kevin bought an agricultural machine for $ 2,000,000 and put it into service. His wife owns her own business and purchased and commissioned $ 30,000 worth of qualified business equipment. The combined dollar limit is $ 470,000.

Case 2: Benjamn Cruz and Yolanda Vlez Benjamn Cruz is married to Yolanda Vlez, with whom he has a car wash business. The business produces annual income of $ 120,000. During the taxable year, they purchased and put into operation a car wash machinery that has a useful life of five years. They bought the machinery for $ 25,000.00.

2. In the following case, calculate the amortization:

Case 3: A company in its first year whose cash basis method of accounting had $ 3,000 for professional services.

Part II Internal Revenue Service Publication 946

1. It establishes the requirements to be able to depreciate a property. 2. List the depreciation systems that can be used when filling out the contributions.

Part III. Federal Internal Revenue Code

Evaluate the federal Internal Revenue Code and use the instructions you find in 2018 Instructions for Schedule C: Profit or Loss for Business. Click herePreview of the document and prepare an annex C for cases 1 and 2.

Prepare Schedule C for the following cases: Case 1: Carmelo Mndez Carmelo Mndez is married and has a business that sells car stereo. Total sales for this taxable year was $ 75,000. Carmelo had the following expenses in your business: Expenses: Insurance $ 200 Commissions $ 3,000 Expenses of office $ 1,000 Rent $ 12,000 Utilities $ 2,500 Licenses $ 500

Costs of goods sold: Inventory at the beginning of

$ 50,000 Purchases $ 5,000 Labor cost of mounting $ 6,000

Case 2: Mario Gmez Mario Gmez is married and has a sports equipment sales business. The total of Sales for this taxable year were $ 80,000. Mario had the following expenses in your business: Expenses: Insurance $ 300 Commissions $ 5,000 Expenses of office $ 1,500 Rent $ 10,000 Utilities $ 2,800 Licenses $ 500

Costs of goods sold: Inventory at the beginning of

$ 70,000 Purchases $ 6,000 Labor cost of mounting $ 5,000