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 | $ | 1,169,000 |
a. If Woolard elects $50,000 of 179, what is Woolards total depreciation deduction for the year?
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?
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