(SOLVED) Margo a calendar year taxpayer paid 80 000 for

machinery seven year

Margo, a calendar year taxpayer, paid $80,000 for machinery (seven-year recovery property)
placed in service on August 1, 2015. a. Assuming that the machinery was the only tangible
property placed in service during the year, compute Margo’s maximum cost recovery
deduction. b. How would your computation change if Margo paid […]

On May 12, 2014, Nelson Inc. purchased eight used-passenger automobiles for use in its
business. Nelson did not make a Section 179 election to expense any portion of the cost of the
automobiles, which are five-year recovery property subject to the half-year convention. Compute
Nelson’s depreciation deduction with respect to […]

Ryland Company, a calendar year taxpayer, purchased commercial realty for $2 mil-lion and
allocated $200,000 cost to the land and $1.8 million cost to the building. Ryland placed the real
estate in service on May 21. a. Compute Ryland’s MACRS depreciation with respect to the
realty for the year of […]

Suber Inc., a calendar year taxpayer, purchased equipment for $800,000 and placed it in
service on March 1. Suber’s chief engineer determined that the equipment had an estimated
useful life of 120 months and a $50,000 residual value. For financial statement purposes, Suber
uses the straight-line method to compute depreciation. […]

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Erwin Company, a calendar year taxpayer, made only two purchases of depreciable personality
this year. The first purchase was five-year recovery property costing $312,800, and the second
purchase was seven-year recovery property costing $574,000. Compute Erwin’s first-year
MACRS depreciation with respect to the personality assuming that: a. The first purchase […]

Knute Company purchased only one asset during its calendar taxable year. The asset cost
$650,000 and has a three-year recovery period. Compute Knute’s MACRS depreciation with
respect to this asset over the recovery period assuming that: a. The asset was placed in service
on August 18. b. The asset was […]

Herelt Inc., a calendar year taxpayer, purchased equipment for $383,600 and placed it in
service on April 1, 2015. The equipment was seven-year recovery property, and Herelt used the
half-year convention to compute MACRS depreciation. a. Compute Herelt’s MACRS
depreciation with respect to the equipment for 2015 and 2016. b. […]

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