Question
QUESTION 6 AMP Corporation (calendar year end) has 2020 taxable income of $1,725,000 before the 179 expense. During 2020, AMP acquired the following assets: Asset
QUESTION 6
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AMP Corporation (calendar year end) has 2020 taxable income of $1,725,000 before the 179 expense. During 2020, AMP acquired the following assets:
Asset
Placed in Service
Basis
Machinery
September 12
$1,540,000
Computer Equipment
February 10
365,000
Office Building
April 2
480,000
Total
$2,385,000
What is the maximum amount of 179 expense AMP may deduct for 2020?
QUESTION 7
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Assume that TDW Corporation (calendar year end) has 2020 taxable income of $650,000 before the 179 expense, acquired the following assets during 2020:
Asset
Placed in Service
Basis
Machinery
October 12
$2,260,000
Computer Equipment
February 10
268,000
Furniture
April 2
880,000
Total
$3,408,000
What is the maximum amount of 179 expense TDW may deduct for 2020?
QUESTION 8
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Assume that Timberline Corporation has 2020 taxable income of $245,000 before the 179 expense.
Asset
Purchase Date
Basis
Furniture (7-year)
December 1
$350,000
Computer Equipment (5-year)
February 28
90,000
Copier (5-year)
July 15
30,000
Machinery (7-year)
May 22
480,000
Total
$950,000
What is the maximum amount of 179 expense Timberline may deduct for 2020?
QUESTION 9
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Last Chance Mine (LC) purchased a coal deposit for $780,000. It estimated it would extract 12,000 tons of coal from the deposit. LC mined the coal and sold it reporting gross receipts of $1 million for year 1. During year 1, LC reported net income from the coal deposit activity in the amount of $60,000. In year 1, LC actually extracted 3,000 tons of coal. What is Last Chances cost depletion for years 1?
QUESTION 10
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Last Chance Mine (LC) purchased a coal deposit for $780,000. It estimated it would extract 12,000 tons of coal from the deposit. LC mined the coal and sold it reporting gross receipts of $1 million for year 1. During year 1, LC reported net income from the coal deposit activity in the amount of $60,000. In year 1, LC actually extracted 3,000 tons of coal. What is Last Chances percentage depletion for year 1 (the applicable percentage for coal is 10 percent)?
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