Question

The following information applies to the questions alsplay At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during th year Cost Basis Date Acquired 1/30 2/15 7/25 8/13 Asset $ 38,500 $ 42,500 $ 85,see $ 414,000 Computers Office desks Machinery office building Assuming Anna does not elect $179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5.) (Do not round intermediate calculations. Rounc your final answers to the nearest whole dollar amount.) Problem 10-48 Part a a. What is Anna's year 1 cost recovery for each asset? Year 1 Cost Recovery Asset Computer equipment Funiture Pickup truck Commercial building S Total

Answer 1

solution @ Anna's year I cost recovery computation of for each asset Particulan data Recovery original bat cost Rate recovery Quarter period basis ☺ (@x6) 1st 5 38.500 20% 7,700 7 42.500 14.29% 6073 7 85.500 14-da), 19.218 3rd 39 W.14.000 0.962), 3,983 computers Jan-30 office dusies febris machinery Jul-25 office building Aug-1 1st 380 Total cost recovery in year- 1 -> 29,9741 working Note: 1 Rate for office building 2x4.5 month 39 - x 100 = 0.969) 12 months

year 2 cost recovery 6 computation of Anna's for each asset. muu wa Particulars Purchase Quarter Cost Recovery period original Basis O H D) 1st 5 computer's office dork's Jan-30 Feb-ls toto 38,500 32% 12,320 42,500 qu.29% 10.323 85.500 gu.297.30.768 Jul-25 machinery (W. NO-1) 10,615 god 39 4,14.000 2.564 in office building Aug-1] Total cost recovery in year-2 54,026 working Note: 1 Rate for office building - 13 x 100 = 2.564%