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: $970,000 cost: placed into service on January 20. Asset #2: 5-year property: $430,000 cost; placed into service on August 1. (Click the icon to view the MACRS half-year convention rates.) Read the requirements. Calculate Richardson's depreciation deductions for 2020. (Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar.) Asset #1 2020 Depreciation 237,553 S 137,600 S 375,153 Asset #2 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 i Requirements - X Sec. 179 expense Bonus depreciation MACRS depreciation What are Richardson's depreciation deductions for 2019 and 2020 in each of the following situations if this is the only property it places into service in those years? Total depreciation Enter any number in the edit fields and then click Check Answer. a. Richardson does not elect Sec. 179 expensing and elects out of bonus depreciation for the machine. b. Richardson elects Sec. 179 expensing for the assets and does not elect out of bonus depreciation. c. Richardson does not elect Sec. 179 expensing and does not elect out of bonus depreciation. 3 parts remaining Answer Reference 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 5-Year 3-Year 33.33 44.45 14.81 7.41 7-Year 14.29 24.49 17.49 12.49 10-Year 10.00 18.00 14.40 11.52 15-Year 5.00 9.50 20.00 32.00 19.20 11.52 11.52 5.76 8.55 7.70 8.93 9.22 6.93 8.92 Recovery Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 8.93 4.46 7.37 6.55 6.55 6.56 6.55 3.28 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 20-Year 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 Print Done 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: $970,000 cost: placed into service on January 20. Asset #2: 5-year property: $430,000 cost; placed into service on August 1. (Click the icon to view the MACRS half-year convention rates.) Read the requirements. Calculate Richardson's depreciation deductions for 2020. (Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar.) Asset #1 2020 Depreciation 237,553 S 137,600 S 375,153 Asset #2 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 i Requirements - X Sec. 179 expense Bonus depreciation MACRS depreciation What are Richardson's depreciation deductions for 2019 and 2020 in each of the following situations if this is the only property it places into service in those years? Total depreciation Enter any number in the edit fields and then click Check Answer. a. Richardson does not elect Sec. 179 expensing and elects out of bonus depreciation for the machine. b. Richardson elects Sec. 179 expensing for the assets and does not elect out of bonus depreciation. c. Richardson does not elect Sec. 179 expensing and does not elect out of bonus depreciation. 3 parts remaining Answer Reference 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 5-Year 3-Year 33.33 44.45 14.81 7.41 7-Year 14.29 24.49 17.49 12.49 10-Year 10.00 18.00 14.40 11.52 15-Year 5.00 9.50 20.00 32.00 19.20 11.52 11.52 5.76 8.55 7.70 8.93 9.22 6.93 8.92 Recovery Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 8.93 4.46 7.37 6.55 6.55 6.56 6.55 3.28 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 20-Year 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 Print Done
