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3 years ago

During 2017, William purchases the following capital assets for use in his catering business:

Business

1 answer:

mamaluj [8]3 years ago

3 0

Answer:

$21,640.

Explanation:

So, we are given the following data or parameters or information which is going to assist us in solving this question/problem:

=> "New passenger automobile (September 30) = $61,600."

=> "Baking equipment (June 30) = 18,480"

=>" William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile (which has a 5-year recoveryand he also uses the MACRS accelerated method to calculate depreciation but elects out of bonus depreciation. "

=> "Assume he has adequate taxable income."

Therefore, if we are to follow the rules of the Internal Revenue Services, the new passenger automobile that is the depreciable limit = 11,160 - 8000 = 3,160.

Hence, the maximum depreciation deduction = Baking equipment + depreciable limit = 18,480 + 3,160 = $21,640.

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3 years ago

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Answer:

350,000

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Explanation:

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3 years ago

Kansas Enterprises purchased equipment for $72,500 on January 1, 2021. The equipment is expected to have a five-year service lif

Papessa [141]

Answer:

Annual depreciation= $12,970

Explanation:

Giving the following information:

Kansas Enterprises purchased equipment for $72,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $7,650 at the end of five years.

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