Casper used the following assets in his Schedule C trade or business in the tax year 2021. Casper is a new client and unfortunatelydoes not have a copy of his prior year's tax return, He recalls that all of the assets purchased in prior years used MACRS depreciation(no $179 expense or bonus). Casper does not wish to take a 5179 or bonus depreciation. (Use Table GA1 and Table 6A-8)Required:Calculate the current year depreciation allowance for Casper's business.Note: Round your final answers to the nearest whole dollar omount.AssetDate PurchasedDate SoldBusiness UseCostMethod2021 ExpenseComputer 103/12/2018100% S100% S100% S100% $3,000 5 year MACRSComputer 205/05/201805/15/20212,500 5 year MACRSPrinter08/25/20212,200 5 year MACRSComputer 305/25/20212,800 5 year MACRSEqupment03/20/201905/01/20212,700 7 year MACRS20,000 5 year MACRS22.000 7 year MACRS3,600 7 year MACRS100%Auto90% SFurniture 102/12/201908/25/2021100%Furniture 208/15/2019100% S100% $Office building04/01/2021330,000 39 SL

MACRS Depreciation Modified Accelerated cost recovery system Depreciation which are implemented by…

Casper used the following assets in his Schedule C trade or business in the tax year 2021. Casper is a new client and unfortunately does not have a copy of his prior year's tax return. He recalls that all of the assets purchased in prior years used MACRS depreciation (no $179 expense or bonus). Casper does not wish to take a B179 or bonus depreciation. (Use Table 6Ad and Table 6A.8) Required: Calculate the current year depreciation allowance for Casper's business. Note: Round your final answers to the nearest whole dollar amount. Asset Date Purchased Date Sold Business Use Cost Method 2021 Expense Computer 1 03/12/2018 100% S 100% S 3,000 5 year MACRS Computer 2 05/05/2018 05/15/2021 2,500 5 yoar MACRS Printer 08/25/2021 05/25/2021 100% $ 2,200 5 year MACRS 2,800 5 yoar MACRS Computer 3 100% $ 100% S 90% S Equipment 03/20/2019 2,700 7 year MACRS Auto 05/01/2021 02/12/2019 20,000 5 year MACRS 22,000 7 year MACRS Furniture 1 08/25/2021 100% S Eurnture3

Casper used the following assets in his Schedule C trade or business in the tax year 2021. Casper is a new client and unfortunately does not have a copy of his prior year's tax return. He recalls that all of the assets purchased in prior years used MACRS depreciation (no $179 expense or bonus). Casper does not wish to take a B179 or bonus depreciation. (Use Table 6Ad and Table 6A.8) Required: Calculate the current year depreciation allowance for Casper's business. Note: Round your final answers to the nearest whole dollar amount. Asset Date Purchased Date Sold Business Use Cost Method 2021 Expense Computer 1 03/12/2018 100% S 100% S 3,000 5 year MACRS Computer 2 05/05/2018 05/15/2021 2,500 5 yoar MACRS Printer 08/25/2021 05/25/2021 100% $ 2,200 5 year MACRS 2,800 5 yoar MACRS Computer 3 100% $ 100% S 90% S Equipment 03/20/2019 2,700 7 year MACRS Auto 05/01/2021 02/12/2019 20,000 5 year MACRS 22,000 7 year MACRS Furniture 1 08/25/2021 100% S Eurnture3

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 1MYW

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Andre acquired a computer on March 3, 2022, for $25,400. He elects the straight-line method for cost recovery. Andre does not elect immediate expensing under § 179. He does not claim any available additional first-year depreciation. Click here to access the depreciation table to use for this problem. Calculate Andre's cost recovery deduction for the computer for tax years 2022 and 2023. 2022: $ 2023: Diana acquires, for $159,200, and places in service a 5-year class asset on December 19, 2022. It is the only asset that Diana acquires during 2022. Diana does not elect immediate expensing under § 179. She elects additional first-year deprecation. Click here to access the depreciation table to use for this problem. Calculate Diana's total cost recovery deduction for 2022.
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