What is the maximum federal cost recovery deduction

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Reference no: EM131797926

Cramer Corporation, a calendar year C Corporation, purchased and placed in service the following new assets on the following dates:

Dates

Assets

Costs

6/20/16

Computers

$700,000

9/15/16

Copiers

$800,000

10/15/16

Office Equipment's

$1,100,000

 

Cramer Corporation purchased no other assets during 2016 and its net income for 2016 is $ 2000000 before taking cost recovery deductions into account.

What is the maximum federal cost recovery deduction Cramer Corporation may take on the assets above in 2016? Please show your work and explain your calculations.

What is the maximum federal cost recovery deduction Cramer Corporation may take on the assets above in 2017? Please show your work and explain your calculations.

If Cramer Corporation sold only the copiers on September 30, 2018, what would Cramer corporation's federal cost recovery deduction be on the copiers in 2018?( you do not need to calculate the federal cost recovery deduction on the computers or on the office equipment in 2018.)

Please show your work and explain your calculations.

Reference no: EM131797926

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