1- Assume that Reid has 2012 taxable income of $125,000 before any §179 expense
ID: 2371695 • Letter: 1
Question
1- Assume that Reid has 2012 taxable income of $125,000 before any §179 expense and acquired the following assets: he placed in service computer equipment (5-year property) on August 6th with a basis of $100,000 and machinery (7-year property) on November 9th with a basis of $100,000. Calculate the maximum depreciation expense including §179 expensing (but not bonus depreciation).
Putin Corporation began business on September 23rd of the current year. It incurred $40,000 of start-up costs and $60,000 of organizational expenditures.
1) How much may be immediately expensed for the year?
2) How much amortization may be deducted in the first year, rounded to the nearest whole number?
Boxer did not elect §179 expense or potential bonus depreciation in 2011, but would like to elect §179 expense for 2012 (assume that taxable income is sufficient). Calculate Boxer's maximum depreciation expense for 2012, rounded to the nearest whole number (ignore bonus depreciation for 2012).
jasmine started a new business in the current year. She incurred $10,000 of start-up costs. How much of the start-up costs can be immediately expensed for the year?
A.
$0
B.
$2,500
C.
$5,000
D.
$10,000
E.
None of these
A.
$0
B.
$2,500
C.
$5,000
D.
$10,000
E.
None of these
Explanation / Answer
C.$5,000
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