Steed and Peel, Ltd MACRS Exercise
I filled out the table as much as possible. We have little information from the professor in general. "S&Ps owners (it is a C corporation) want to maximize first-year tax depreciation and related deductions."
~This is dated 12/31/2019
~We cannot change the purple parts
~Use MACRS (I already entered these in, hopefully correctly?)
~Total allowable should range from $1,025,000 to 1,140,000
~I have no idea if what I did here is A) Is what I did legal? B) What about bonus depreciation? C) How can you maximize this to hit the $1,140,000 total allowable amount
~How do you calculate the 4th-quarter ratio? What is this for?
~See another student struggling with this here: https://www.chegg.com/homework-help/questions-and-answers/anyone-get-started-original-assignment-far-want-know-track-next-completely-wrong-let-know--q46563256
Steed & Peel - 12/31/2019 Recovery Period $179 Expense Amount Remaining Basis Remaining Basis Recovery % GDS Recovery Deduction Luxury Auto Total Allowable Deductions Description Date Acquired Cost Convention GDS Method Please insert any comments here you feel are needed to explain your approach. Bonus Rate Bonus Deprn. MACRS Cap Executive Vehicle (Corvette) 4/21/19 $ 88,644 5 HY Exc. Car =larger than compact, smaller than full sized sedans-wiki. Hopefully, 10,000 this is for company use??? DDB 88,644 88,644 0.21 17,729 10,000 Meat Slicers & Related Food Service (Used Eqpt.) 3/15/19 312,862 3 HY DDB 312,862 0.3333 312,862 This is used, high use deb all. Walk-in Cooler & Related 5/20/19 369,798 7 HY DDB 123,266 246,532 246,532 0.1429 35,229 158,495 deb some Furniture & Fixtures 6/24/19 130,255 HY DDB 130,255 n/a n/a n/a 130,255 cells locked-can't change without pop up? Computers & Peripherals 1/8/19 61,818 5 HY DDB 61,818 n/a n/a n/a 61,818 cells locked-can't change without pop up? Canned software - business applications 9/25/19 34,500 3 HY DDB 34,500 0.3333 34,500 "canned"=off-the self, can take 100% Delivery/Cargo Trucks (3 - each GWW 9,500 lbs) 11/25/19 171,300 5 HY # > 40% DDB 75,000 96,300 96,300 0.3 28,890 103,890 25K, per "bucket" or per truck 40% DDB 548,646 548,646 0.5 274,323 274,323 Not eligible for sec. 179 Totals $ 1,717,823 $ 980,122 $ 980,122 $ 356,171 $ 1,086,143 $1,025,000-1,140,000 980,122 737,701 $ 1,000,000 262,299 Total Personal Property (after any $179) Total Personal Property 4th Quarter (after any $179) WANT-> 737,701 $ Fourth Quarter Ratio 75.27% Steed & Peel - 12/31/2019 Recovery Period $179 Expense Amount Remaining Basis Remaining Basis Recovery % GDS Recovery Deduction Luxury Auto Total Allowable Deductions Description Date Acquired Cost Convention GDS Method Please insert any comments here you feel are needed to explain your approach. Bonus Rate Bonus Deprn. MACRS Cap Executive Vehicle (Corvette) 4/21/19 $ 88,644 5 HY Exc. Car =larger than compact, smaller than full sized sedans-wiki. Hopefully, 10,000 this is for company use??? DDB 88,644 88,644 0.21 17,729 10,000 Meat Slicers & Related Food Service (Used Eqpt.) 3/15/19 312,862 3 HY DDB 312,862 0.3333 312,862 This is used, high use deb all. Walk-in Cooler & Related 5/20/19 369,798 7 HY DDB 123,266 246,532 246,532 0.1429 35,229 158,495 deb some Furniture & Fixtures 6/24/19 130,255 HY DDB 130,255 n/a n/a n/a 130,255 cells locked-can't change without pop up? Computers & Peripherals 1/8/19 61,818 5 HY DDB 61,818 n/a n/a n/a 61,818 cells locked-can't change without pop up? Canned software - business applications 9/25/19 34,500 3 HY DDB 34,500 0.3333 34,500 "canned"=off-the self, can take 100% Delivery/Cargo Trucks (3 - each GWW 9,500 lbs) 11/25/19 171,300 5 HY # > 40% DDB 75,000 96,300 96,300 0.3 28,890 103,890 25K, per "bucket" or per truck 40% DDB 548,646 548,646 0.5 274,323 274,323 Not eligible for sec. 179 Totals $ 1,717,823 $ 980,122 $ 980,122 $ 356,171 $ 1,086,143 $1,025,000-1,140,000 980,122 737,701 $ 1,000,000 262,299 Total Personal Property (after any $179) Total Personal Property 4th Quarter (after any $179) WANT-> 737,701 $ Fourth Quarter Ratio 75.27%
