Do My Essay!

Do not waste time. Get a complete paper today.

Our leading custom writing service provides custom written papers in 80+ disciplines. Order essays, research papers, term papers, book reviews, assignments, dissertation, thesis or extensive dissertations & our expert ENL writers will easily prepare a paper according to your requirements.

You’ll get your high quality plagiarism-free paper according to your deadline! No Bullshit!!

Special offer! Get 20% discount on your first order. Promo code: SAVE20

.85pt;text-indent:-23.85pt;mso-list: l0 level1 lfo1;tab-stops:list 22.5pt .5in”>
1. [LO 1] Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $24,500. In addition, Jose incurred the following expenses before using the van: shipping costs of $650; paint to match the other fleet vehicles at a cost of $1,000; registration costs of $3,200 which included $3,000 of sales tax and a registration fee of $200; wash and detailing for $50; and an engine tune-up for $250. What is Jose’s cost basis for the delivery van?

2. [LO 1] Emily purchased a building to store inventory for her business. The purchase price was $760,000. Beyond this, Emily incurred the following necessary expenses to get the building ready for use: $10,000 to repair the roof, $5,000 to make the interior suitable for her finished goods, and $300 in legal fees. What is Emily’s cost basis in the new building?

3. [LO 1] Dennis contributed business assets to a new business in exchange for stock in the company. The exchange did not qualify as a nontaxable exchange. The fair market value of these assets was $287,000 on the contribution date. Dennis’s original basis in the assets he contributed was $143,000, and the accumulated depreciation on the assets was $78,000.

Gudwriter Essay Writing

What is the business’s basis in the assets it received from Dennis?
What would be the business’s basis if the transaction qualified as a nontaxable exchange?
4. [LO 1] Brittany started a law practice as a sole proprietor. She owned a computer, printer, desk, and file cabinet she purchased during law school (several years ago) that she is planning to use in her business. What is the depreciable basis that Brittany should use in her business for each asset, given the following information?

Asset

Purchase Price

FMV at Time Converted to Business use

Computer

$2,500

$800

Printer

$300

$150

Desk

$1,200

$1,000

File cabinet

$200

$225

5. [LO 1] Meg O’Brien received a gift of some small-scale jewelry manufacturing equipment that her father had used for personal purposes for many years. Her father originally purchased the equipment for $1,500. Because the equipment is out of production and no longer available, the property is currently worth $4,000. Meg has decided to begin a new jewelry manufacturing trade or business. What is her depreciable basis for depreciating the equipment?

6. [LO 1] Gary inherited a Maine summer cabin on 10 acres from his grandmother. His grandparents originally purchased the property for $500 in 1950 and built the cabin at a cost of $10,000 in 1965. His grandfather died in 1980 and when his grandmother recently passed away, the property was appraised at $500,000 for the land and $700,000 for the cabin. Since Gary doesn’t currently live in New England, he decided that it would be best to put the property to use as a rental. What is Gary’s basis in the land and in the cabin?

7. [LO 1] Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $125,000. The appraised fair market value of the warehouse was $75,000, and the appraised value of the land was $100,000.

What is Bob’s basis in the warehouse and in the land?
What would be Bob’s basis in the warehouse and in the land if the appraised value of the warehouse is $50,000, and the appraised value of the land is $125,000?
Which appraisal would Bob likely prefer?
8. [LO 2] At the beginning of the year, Poplock began a calendar-year dog boarding business called Griff’s Palace. Poplock bought and placed in service the following assets during the year:

Asset

Date Acquired

Cost Basis

Computer equipment

3/23

$5,000

Dog grooming furniture

5/12

$7,000

Pickup truck

9/17

$10,000

Commercial building

10/11

$270,000

Land (one acre)

10/11

$80,000

Assuming Poplock does not elect §179 expensing or bonus depreciation, answer the following questions:

What is Poplock’s year 1 depreciation expense for each asset?
What is Poplock’s year 2 depreciation expense for each asset?
9. [LO 2] DLW Corporation acquired and placed in service the following assets during the year:

Asset

Date Acquired

Cost Basis

Computer equipment

2/17

$10,000

Furniture

5/12

$17,000

Commercial building

11/1

$270,000

Assuming DLW does not elect §179 expensing or bonus depreciation, answer the following questions:

What is DLW’s year 1 cost recovery for each asset?
What is DLW’s year 3 cost recovery for each asset if DLW sells all of these assets on 1/23 of year 3?
10. [LO 2] At the beginning of the year, Dee began a calendar-year business and placed in service the following assets during the year:

Asset

Date Acquired

Cost Basis

Computer equipment

3/23

$5,000

Furniture

5/12

$7,000

Pickup truck

11/15

$10,000

Commercial building

10/11

$270,000

Assuming Dee does not elect §179 expensing or bonus depreciation, answer the following questions:

What is Dee’s year 1 cost recovery for each asset?
What is Dee’s year 2 cost recovery for each asset?
[LO 2] Evergreen Corporation (calendar year end) acquired the following assets during the current year (ignore §179 expense and bonus depreciation for this problem):
Asset

Placed in

Service Date

Original

Basis

Machinery

October 25

$70,000

Computer Equipment

February 3

$10,000

Used Delivery Truck*

August 17

$23,000

Furniture

April 22

$150,000

*The delivery truck is not a luxury automobile.

What is the allowable MACRS depreciation on Evergreen’s property in the current year?
What is the allowable MACRS depreciation on Evergreen’s property in the current year if the machinery had a basis of $170,000 rather than $70,000?

[LO 2] Convers Corporation (June 30 year-end) acquired the following assets during the current tax year (ignore §179 expense and bonus depreciation for this problem):
Asset

Placed in

Service Date

Original

Basis

Machinery

October 25

$70,000

Computer Equipment

February 3

$10,000

Used Delivery Truck*

March 17

$23,000

Furniture

April 22

$150,000

Total

$253,000

*The delivery truck is not a luxury automobile.

What is the allowable MACRS depreciation on Convers’ property in the current year?

13. [LO 2] {Planning} Parley needs a new truck to help him expand Parley’s Plumbing Palace. Business has been booming and Parley would like to accelerate his tax deductions as much as possible (ignore §179 expense and bonus depreciation for this problem). On April 1, Parley purchased a new delivery van for $25,000. It is now September 26 and Parley, already in need of another vehicle, has found a deal on buying a truck for $22,000 (all fees included). The dealer tells him if he doesn’t buy the truck (Option 1), it will be gone tomorrow. There is an auction (Option 2) scheduled for October 5 where Parley believes he can get a similar truck for $21,500, but there is also a $500 auction fee.

Which option allows Parley to generate more depreciation expense deductions this year (the vehicles are not considered to be luxury autos)?
Assume the original facts except that the delivery van was placed in service one day earlier on March 31 rather than April 1. Which option generates more depreciation expense?
14. [LO 2] Way Corporation disposed of the following tangible personal property assets in the current year. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation’s 2014 depreciation expense (ignore §179 expense and bonus depreciation for this problem).

Asset

Date acquired

Date sold

Convention

Original

Basis

Furniture (7 year)

5/12/10

7/15/14

HY

$55,000

Machinery (7 year)

3/23/11

3/15/14

MQ

$72,000

Delivery truck* (5 year)

9/17/12

3/13/14

HY

$20,000

Machinery (7 year)

10/11/13

8/11/14

MQ

$270,000

Computer (5 year)

10/11/14

12/15/14

HY

$80,000

*Used 100 percent for business.

[LO 2] On November 10 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,200,000; $300,000 was allocated to the basis of the land and the remaining $900,000 was allocated to the basis of the building.
Using MACRS, what is Javier’s depreciation expense on the building for years 1 through 3?
What would be the year 3 depreciation expense if the building was sold on August 1 of year 3?
Answer the question in part (a), except assume the building was purchased and placed in service on March 3 instead of November 10.
Answer the question in part (a), except assume that the building is residential property.
What would be the depreciation for 2014, 2015, and 2016 if the property were nonresidential property purchased and placed in service November 10, 1997 (assume the same original basis)?
[LO 2] Carl purchased an apartment complex for $1.1 million on March 17 of year 1. $300,000 of the purchase price was attributable to the land the complex sits on. He also installed new furniture into half of the units at a cost of $60,000.
a. What is Carl’s allowable depreciation expense for his real property for years 1 and 2?

b. What is Carl’s allowable depreciation expense for year 3 if the real property is sold on January 2of year 3?

17. [LO 2, LO 3] AMP Corporation (calendar year end) has 2014 taxable income of $900,000 before the §179 expense. During 2014, AMP acquired the following assets:

Asset

Placed in Service

Basis

Machinery

September 12

$1,550,000

Computer Equipment

February 10

365,000

Office Building

April 2

480,000

Total

$2,395,000

a) What is the maximum amount of §179 expense AMP may deduct for 2014 (assume the 2013 §179 limits are extended to 2014)?

b) What is the maximum total depreciation expense, including §179 expense, that AMP may deduct in 2014 on the assets it placed in service in 2014 assuming no bonus depreciation (assume the 2013 §179 limits are extended to 2014)?

Gudwriter Essay Writing