Question
Woolard Supplies (a sole proprietorship) has taxable income in 2020 of $240,000 before any depreciation deductions (179, bonus, or MACRS) and placed some office furniture
Woolard Supplies (a sole proprietorship) has taxable income in 2020 of $240,000 before any depreciation deductions (179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Asset | Placed In Service | Basis | |
Office furniture (used) | March 20 | $ | 1,193,000 |
|
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 that Woolard may deduct in 2020?
What is Woolard's 179 carryforward amount to next year, if any?
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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started