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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