Question 1 (10 marks 2 marks each) Ahmed LLC placed in service on April 29, 2019, machinery and equipment (seven year property) with a basis of $1,600,000 Assume that Ahmed has sufficient income to avoid any limitations Calculate the maximum depreciation deduction including 179 expensing (but ignoring bonus expensing) (Use MACRS Table 1) Dubai LLC placed in service on May 19, 2019, machinery and equipment (seven year property) with a basis of $3,200,000 Assume that Dubai has sufficient income to avoid any limitations Calculate the maximum depreciation deduction including 179 expensing (but ignoring bonus depreciation) (Use MACRS Table 1) Sharjah purchased a used camera (five year property) for use in her sole proprietorship The basis of the camera was $2,400 Sharjah used the camera in her business 60 percent of the time and used it for personal purposes the rest of the time during the first year Calculate Sharjahs depreciation deduction during the first year, assuming the sole proprietorship had a loss during the year (Sharjah did not place the property in service in the last quarter) (Use MACRS Table 1) UAE LLC purchased a warehouse and land during the current year for $350,000 The purchase price was allocated as follows $275,000 to the building and $75,000 to the land The property was placed in service on August 12 Calculate UAE's maximum depreciation for this first year (Use MACRS Table 5) (Round final answer to the nearest whole number) Ajman LLC purchased a rental house and land during the current year for $150,000 The purchase price was allocated as follows $100,000 to the building and $50,000 to the land The property was placed in service on May 22 Calculate Tom Ajman's maximum depreciation for this first year (Use MACRS Table 3 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 28, 2024

Question 1: (10 marks: 2 marks each)

Ahmed LLC placed in service on April 29, 2019, machinery and equipment (seven-year property) with a basis of $1,600,000. Assume that Ahmed has sufficient income to avoid any limitations. Calculate the maximum depreciation deduction including 179 expensing (but ignoring bonus expensing) (Use MACRS Table 1).

Dubai LLC placed in service on May 19, 2019, machinery and equipment (seven-year property) with a basis of $3,200,000. Assume that Dubai has sufficient income to avoid any limitations. Calculate the maximum depreciation deduction including 179 expensing (but ignoring bonus depreciation) (Use MACRS Table 1).

Sharjah purchased a used camera (five-year property) for use in her sole proprietorship. The basis of the camera was $2,400. Sharjah used the camera in her business 60 percent of the time and used it for personal purposes the rest of the time during the first year. Calculate Sharjahs depreciation deduction during the first year, assuming the sole proprietorship had a loss during the year. (Sharjah did not place the property in service in the last quarter) (Use MACRS Table 1).

UAE LLC purchased a warehouse and land during the current year for $350,000. The purchase price was allocated as follows: $275,000 to the building and $75,000 to the land. The property was placed in service on August 12. Calculate UAE's maximum depreciation for this first year. (Use MACRS Table 5) (Round final answer to the nearest whole number).

Ajman LLC purchased a rental house and land during the current year for $150,000. The purchase price was allocated as follows: $100,000 to the building and $50,000 to the land. The property was placed in service on May 22. Calculate Tom Ajman's maximum depreciation for this first year. (Use MACRS Table 3.)