Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1. Table 2 and Table 5.)
Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1. Table 2 and Table 5.)
Chapter17: Property Transactions: §1231 And Recapture Provisions
Section: Chapter Questions
Problem 2DQ
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Transcribed Image Text:b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not
elect out of bonus depreciation (but does not take §179 expense)?
4
MACRS depreciation
Transcribed Image Text:Required information
Convers Corporation (calendar year-end) acquired the following assets during the current tax
year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1. Table 2
and Table 5.)
Asset
Machinery
Computer equipment
Delivery truck
Furniture
Total
Date Placed in
Service
October 25
February 31
MACRS depreciation:
March 17
April 22
Original
Basis
$ 70,000
10,000
23,000
150,000
$ 253,000
*The delivery truck is not a luxury automobile.
In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB)
on May 12 at a cost of $300,000.
a. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not
elect $179 expense and elects out of bonus depreciation?
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