Question
Short Corporation acquired and placed in service the following 100% business-use assets. Short did not claim Sec. 179 or bonus depreciation expensing on any of
Short Corporation acquired and placed in service the following 100% business-use assets. Short did not claim Sec. 179 or bonus depreciation expensing on any of these properties.
a. What is Short's total depreciation deduction in 2018? (Use MACRS rates to three decimal places, X.XXX%. Round all amounts to the nearest dollar. Complete all input fields. Enter a "0" if no depreciation is allowed.)
| Asset | 2018 Depreciation |
| Truck | |
| machinery | |
| land | |
| building | |
| total depreciation |
| b. Short Corporation sells the machinery on February 2, 2020 and sells the building on September 18,2020. What are the adjusted bases of these two assets on the dates of sale (compute accumulated depreciation to date ofsale)? |
| Truck (light-duty, modified non-personal use) costing$20,000: Placed in service on March 3,2018 with a 5-year MACRS recovery period. | |
|
| Machinery costing $90,000: Placed in service on November 15, 2018 with a7-year MACRS recovery period.
|
|
| Land costing $76,000: Placed in service on October 12, 2018.
|
|
| Building costing $340,000: Placed in service on December 4, 2018 with a39-year MACRS recovery period. |
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Auditing Integrated Concepts And Procedures
Authors: Donald H. Taylor, G. William Glezen
5th Edition
0471524239, 978-0471524236
