Woolard Inc. has taxable income in 2015 of $150,000 before any depreciation deductions (179, bonus, or MACRS) and acquired the following assets during the year: (Use MACRS Table 1, Table 2, Table 3, Table 4and Table 5.) (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

Asset	Placed in Service	Basis
Office furniture (used)	March 20	$	560,000

Assume the 2014 179 limits and bonus depreciation are extended to 2015

References

Section BreakProblem 10-61 (LO 10-2, LO 10-3)

1.

value: 0.83 points

Required information

Problem 10-61 Part-a

a.	If Woolard elects $50,000 of 179, what is Woolards total depreciation deduction for the year?

References

eBook & Resources

ProblemDifficulty: 2 MediumLearning Objective: 10-03 Explain the additional special cost recovery rules (179; bonus; listed property) and calculate the deduction allowable under these rules.

Problem 10-61 Part-aLearning Objective: 10-02 Determine the applicable cost recovery (depreciation) life, method, and convention for tangible personal and real property and calculate the deduction allowable under basic MACRS.

Check my work

2.

value: 0.83 points

Required information

Problem 10-61 Part-b

b.	If Woolard elects the maximum amount of 179 for the year, what is the amount of deductible 179 expense for the year? What is the total depreciation expense that Woolard may deduct in 2015? What is Woolard's 179 carryfoward amount to next year, if any?

References

eBook & Resources

ProblemDifficulty: 2 MediumLearning Objective: 10-03 Explain the additional special cost recovery rules (179; bonus; listed property) and calculate the deduction allowable under these rules.

Problem 10-61 Part-bLearning Objective: 10-02 Determine the applicable cost recovery (depreciation) life, method, and convention for tangible personal and real property and calculate the deduction allowable under basic MACRS.

Check my work

3.

value: 0.83 points

Required information

Problem 10-61 Part-c

c.	Woolard is concerned about future limitations on its 179 expense. How much 179 expense should Woolard expense this year if it wants to maximize its depreciation this year and avoid any carryover to future years?