Potomac LLC purchased an automobile for $65,000 on August 5, 2019. What is Potomac's depreciation expense for 2019 (recognizing that Potomac does not elect any bonus depreciation)? Exhibit 10-10 on page 10-26. The text does not reflect year 2020 limits, so this problem will use Year 2019 limits, to avoid confusion.
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Potomac LLC purchased an automobile for $65,000 on August 5, 2019. What is Potomac's
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- [The following information applies to the questions displayed below.] 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 Office furniture (used) Placed In Service Basis March 20 $1,195,000 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 expenseRequired information [The following information applies to the questions displayed below.] 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.) Placed In Service Asset Office furniture (used) March 20 §179 expense Basis $1,171,000 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?At the end of 2020, Magenta Manufacturing Company discovered that construction cost had been capitalized as a cost of the factory building in 2015 when it should have been treated as a cost of production equipment installation costs. As a result of the misclassification, the depreciation through 2018 was understated by 110,000, and depreciation for 2019 was understated by 90,000. What would be the consequences of correcting for the misclassification of the property cost? a. The taxpayer uses the FIFO inventory method, and 25% of goods produced during the period were included in the ending inventory. b. The taxpayer uses the LIFO inventory method, and no new LIFO layer was added during 2019.
- ! Required information [The following information applies to the questions displayed below.] 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.) Placed In Service Asset Basis Office furniture (used) March 20 $1,171,000 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 2020? What is Woolard's §179 carryforward amount to next year, if any? Deductible §179 expense Total depreciation deduction §179 carryforwardWoolard 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 $ 1,185,000 a. If Woolard elects $50,000 of $179, what is Woolard' s total depreciation deduction for the year?In 2019, the Hermes Corporation failed to record $8,000 in depreciation expense. The error was discovered in May of 2020. Required. Make the appropriate joumal entry in the books of Hermes Corporation in the year 2020.
- Woolard Supplies (a sole proprietorship) has taxable income in 2023 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.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Asset Office furniture (used) Problem 10-62 Part b (Static) Placed In Service March 20 Basis $ 1,200,000 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 2023? What is Woolard's §179 carryforward amount to next year, if any? X Answer is complete but not entirely correct. Deductible $179 expense $ 211,420 X Total depreciation deduction $ 240,000 §179 carryforward $ 788,580 XOn February 17, 2021, Brecken places in service an automobile that cost $23,000. Assume Brecken does not claim the additional first-year or any § 179 deduction. The auto is used 35% for business and 65% for personal use. Assume the luxury automobile limitations for Year 1 is $10,100. Click here to access the depreciation table to use for this problem. a. Compute the total depreciation allowed for 2021: b. Assume that the automobile cost $45,000. Compute the total depreciation allowed for 2021:Required information [The following information applies to the questions displayed below.] Woolard Supplies (a sole proprietorship) has taxable income in 2023 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.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Asset Office furniture (used) Placed In Service Basis March 20 $ 1,179,000 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 2023? What is Woolard's §179 carryforward amount to next year, if any? Deductible §179 expense Total depreciation deduction §179 carryforward
- Required information [The following information applies to the questions displayed below.] Woolard Supplies (a sole proprietorship) has taxable income in 2023 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.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Asset Office furniture (used) Placed In Service March 20 Deductible $179 expense Total depreciation deduction $179 carryforward 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 2023? What is Woolard's §179 carryforward amount to next year, if any? Basis $ 1,200,000 $ 214,335Modified Accelerated Cost Recovery System (MACRS), Listed Property, Limitation on Depreciation of Luxury Automobiles(LO 8.2, 8.4, 8.5) On September 14, 2019, Jay purchased a passenger automobile that is used 75 percent in his accounting business. The automobile has a basis for depreciation purposes of $40,000, and Jay uses the accelerated method under MACRS. Jay does not elect to expense under section 179. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. TABLE 8.2 Accelerated Depreciation for Personal Property Assuming Half-Year Convention(For Property Placed in Service after December 31, 1986) RecoveryYear 3-Year(200% DB) 5-Year(200% DB) 7-Year(200% DB) 10-Year(200% DB) 15-Year(150% DB) 20-Year(150% DB) 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 * 19.20…Taylor LLC purchased an automobile for $55,000 on July 5, 2020. What is Taylor's maximum depreciation deduction for 2020 (including bonus depreciation) if its business use percentage is 100 percent? $10,100 $11,000 $18,100 $55,000 None of the choices are correct.