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Riverside Corporation purchased and placed in service the following assets in 2022: Riverside Corporation purchased no other assets during 2022, and its net income for
Riverside Corporation purchased and placed in service the following assets in 2022: Riverside Corporation purchased no other assets during 2022, and its net income for the year is $50,000,000 before considering cost recovery deductions. a. What is the maximum tax depreciation deduction Riverside Corporation may take in 2022 , assuming the company elects $179 expense and elects out of bonus depreciation? Please show your work and explain your calculations. (9 points) D. What is the depreciation deduction Riverside Corporation in 2023 (year 2) on the office furniture asset? (NOTE: You do not need to calculate the depreciation deduction on the other assets placed in 2022, just the office furniture). Please show your work and explain your calculations. c. What is Riverside Corporation's adjusted basis in the office furniture at the end of 2023 (year 2)? (NOTE: You do not need to calculate the adjusted basis on the other assets as of the end of 2022 , just the office furniture). Please show your work and explain your calculations. d. How would your answer to question 2(a) above change if Riverside Corporation does NOT elect out of bonus depreciation in 2022 ? That is, what is the maximum depreciation deduction Riverside Corporation may take in 2022. assuming that Riverside Corporation takes bonus depreciation on any qualifying assets? Please show your work and explain your calculations
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