I NEED the calculation of each step. thanks Answer the question on the space pro
ID: 2590044 • Letter: I
Question
I NEED the calculation of each step. thanks
Answer the question on the space provided below. Show work for partial credit. The more organized and neat your work, the easier it wi be to determine and award credit. If your writing is illegible or I cannot follow how you derived your answer--no credit will be awarded. You will need to consult the depreciation tables in your tex answer this question. tbook to In 201 research business: Dr. Edwin Jenner, a virologist, acquires the following assets to be used in his virology Placed In Service March 28, 2017 April 1, 2017 June 20, 2017 October 1, 2017 December 2, 2017 Asset Cost Office Furniture & fixtures Computers & peripheral equipment Office supplies (paper, ink, etc.) Medical equipment 14-yr old horse (Buttons) used for medical experiments 28,000 35,000 1,400 400,000 6,000 Dr. Jenner's taxable income from his business would not create a limitation for purposes of the $179 deduction. Dr. Jenner does not want to take additional first-year depreciation (if available). Determine Dr. Jenner's cost recovery deduction under MACRS for each qualified asset and the total cost recovery deduction for 2017.Explanation / Answer
400,000
20,000
6,000
500
A Total value of assets placed in service: Asset Date Amount Recovery period Office furniture & fixtures 28-Mar-17 28,000 8 years Computer and equipment 1-Apr-17 35,000 6 years Medical equipment 01-Oct-17 400,000 6 years Horse (14 years' age) 02-Dec-17 6,000 4 years TOTAL 469,000 B Quarterly placement calculation Quarter Amount % of total placement I 28000 5.97 II 35000 7.46 III 0 0.00 IV 406000 86.57 C Since more than 40% are placed in the last quarter, mid quarter convention will apply D According to the mid quarter convention, the rate of depreciation based on the above stated recovery period, on each asset is as under Asset Rate of dep Cost Depreciation for 2017 Office furniture & fixtures 25% 28,000 7,000 Computer and equipment 25% 35,000 8,750 Medical equipment 5%400,000
20,000
Horse (14 years' age) 8.33%6,000
500
TOTAL DEPRECIATION FOR 2017 36,250 E Office supplies are not eligible for depreciationRelated Questions
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