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This is very difficult for me. Please help me. 6 Required information [The following information applies to the questions displayed below. At the beginning of
This is very difficult for me. Please help me.
6 Required information [The following information applies to the questions displayed below. At the beginning of the current year, Poplock began a calendar-year dog boarding business called Griff's Palace. Poplock bought and placed in service the following assets during the year: Part 1 of 2 Asset Computer equipment Dog-grooming furniture Pickup truck Commercial building Land (one acre) Date Acquired 3/23 5/12 9/17 10/11 10/11 Cost Basis $ 7,400 9,400 10,000 294,000 104,000 0.42 points eBook Assuming Poplock does not elect $179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) a. What is Poplock's year 1 depreciation deduction for each asset? Asset Depreciation Deduction Computer equipment Dog-grooming furniture Pickup truck Commercial building Land (one acre) Total 0 (The following information applies to the questions displayed below.) 7 At the beginning of the current year, Poplock began a calendar-year dog boarding business called Griff's Palace. Poplock bought and placed in service the following assets during the year: Part 2 of 2 Part 2 of 2 Asset Computer equipment Dog-grooming furniture Pickup truck Commercial building Land (one acre) Date Acquired 3/23 5/12 9/17 10/11 10/11 Cost Basis $ 7,400 9,400 10,000 294,000 104,000 0.42 points Assuming Poplock does not elect $179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) eBook b. What is Poplock's year 2 depreciation deduction for each asset? Asset Depreciation Deduction Computer equipment Dog-grooming furniture Pickup truck Commercial building Land (one acre) Total $ 0 Table 1 MACRS Half-Year Convention 20-Year Year 1 3.750% Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 44.45 32.00 24.49 18.00 9.50 14.81 19.20 17.49 14.40 8.55 7.41 11.52 12.49 11.52 7.70 Year 2 7.219 Year 3 6.677 Year 4 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 8.93 6.55 5.90 4.888 Year 8 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 5.90 4.461 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% 25.00% Year 2 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 11.01 8.75 Year 5 5 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 8 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Month 8 1.364% Month 9 Month 10 Month 11 Month 12 1.061% 0.758% 0.455% 0.152% 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.637 3.636 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Year 1 3.485% 3.182% 2.879% 2.576% 2.273% 1.970% 1.667% Year 2-9 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 10 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 12 3.637 3.637 3.637 3.637 3.636 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3,637 Year 16 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 17 3.636 3,636 3.636 3.636 3.636 3.636 3,637 Year 18 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 20 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 21 3,636 3.636 3.636 3.636 3.636 3.636 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 23 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 24 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 25 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 26 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 27 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 28 1.97 2.273 2.576 2.879 3.182 3.485 3.636 Year 29 0.152 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3,637 3.637 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 1.061 0.455 0.758 1.364 1.667 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line-31.5 Years (for assets placed in service before May 13, 1993) Month Property Placed in Service Month 5 Month 6 Month 7 Month 1 Month 2 Month 3 Month 4 Month 8 Month 9 Month 10 Month 11 Month 12 2.778% 2.513% 2.249% 1.720% 1.455% 1.190% 0.926% 0.661% 0.132% Year 1 Year 2-7 3.042% 3.175 1.984% 3.175 0.397% 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.175 Year 8 3.175 3.175 3.174 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 Year 9 3.175 3.174 3.174 3.175 3.174 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 10 3.174 3.175 3.175 3.174 3.174 3.175 3.174 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.175 Year 11 Year 12 Year 13 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 Year 14 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.1 74 Year 15 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.175 3.174 3.174 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.175 3.174 3.175 3.174 3.174 3.175 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.175 3.175 3.174 3.175 3.174 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.174 3.175 3.175 3.174 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.174 3.175 Year 22 3.175 3.174 3.175 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.175 3.174 Year 23 3.174 3.174 3.174 3.175 3.115 3.174 3.175 3.175 3.174 3.175 3.175 3.174 3.175 3.175 3.174 3.175 3.174 Year 24 Year 25 Year 26 3.174 3.175 3.174 3.175 3.175 3.174 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.174 3.175 3.174 3.175 3.175 3.174 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 Year 27 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 28 3.175 3.175 3.175 3.175 3.174 3.175 3.175 3.174 3.174 3.175 3.174 3.175 3.175 3.174 3.174 3.175 Year 29 3.174 3.174 3.174 3.174 3.174 3.175 3.174 3.175 Year 30 3.175 3.174 3.174 3.175 3.174 3.174 3.175 1.984 Year 31 3.174 3.175 3.174 3.175 3.174 0.397 3.174 3.175 2.513 3.175 3.174 2.778 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.0M2 3.175 3.174 3.175 3.175 Year 32 1.720 2.249 3.175 3.174 3.174 Year 33 0.132 0.661 0.926 1.190 1.455 TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 2.461% 2.247% 2.033% 1.819% 1.605% 1.391% 1.177% 0.963% 0.749% 0.535% 0.321% 0.107% Year 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 2.461Step by Step Solution
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