Reference no: EM131939460
Problem - Luxury Auto Limitations. Tracy acquires an automobile (MACRS 5-year recovery) on March 1, 2013. He uses the automobile 70% of the time in his business and 30% of the time for personal use. The automobile cost $36,000, and no amounts are expensed under Sec. 179 or bonus depreciation.
a. What is depreciation for 2013-2018 and any subsequent years?
b. How would your answer to Part a change if the vehicle were a SUV with a gross vehicle weight rated (GVWR) of over 6,000 pounds and Tracy elected to expense the SUV under Sec. 179?
c. What is the amount deductible in 2013 and 2014 if the taxpayer elects to take advantage of bonus depreciation?
Additional Requirements - Level of Detail: Show all work
Other Requirements: Please answer in high detail and relate with CFR or regulations on Word doc.
Additional Requirements - Level of Detail: Show all work
Other Requirements: Please provide detailed response when answering with CFR and/or regulations that link to answer provided.
|
What amount of interest expense would magic report
: Magic Enterprises borrowed $18,000 from the local bank on Julyl 1, 2010, What amount of interest expense would Magic report on the 2010 income statement
|
|
Organizational ability of the hospital
: Which is more important in managed care, the capital and organizational ability of the hospital/managed care organization
|
|
Describe a potential capital investment project
: Describe and estimate specific investment needs and cash flows for the project.Identify and describe a potential capital investment project.
|
|
Advise marble on the taxation implication of the transaction
: How would your advice differ if Marble had sold the machine for only $55,000 (GST inclusive) to a company that has the same shareholders as Marble?
|
|
What is depreciation for any subsequent years
: The automobile cost $36,000, and no amounts are expensed under Sec. 179 or bonus depreciation. What is depreciation for 2013-2018 and any subsequent years
|
|
What is the minimum number of part-time employees
: Suppose Mr. Brewer uses five permanent employees. What is the minimum number of part-time employees he will need
|
|
Explain why expected return is considered forward-looking
: Explain why expected return is considered forward-looking. What challenges arise in using expected return?
|
|
Calculate depreciation using sum-of-the-years digits
: On April 29, 2013, Quality Appliances purchased equipment for $260,000. Calculate depreciation for 2013 and 2014
|
|
Additional local demand for concerts
: Find the optimal number of ads of each type to run to meet the choir's goals by developing and solving an integer optimization model.
|