Question
Woolard Supplies (a sole-proprietorship) has taxable income in 2018 of $240,000 before any depreciation deductions (179, bonus, or MACRS) and placed some office furniture into
Woolard Supplies (a sole-proprietorship) has taxable income in 2018 of $240,000 before any depreciation deductions (179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture had been used previously by Liz Woolard (the owner of the business) before it was placed in service by the business. (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 | $ | 1,161,000 |
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 2018? What is Woolard's 179 carryforward amount to next year, if any? Deductible 179 expense----------------------? Total Depreciation -----------------------? 179 carryforward---------------------? 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? 179 expense----------------------?
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