Full file at https://testbankuniv.eu/Taxation-of-Business-Entities-2017-8th-Edition-Spilker-Solutions-Manual
Solutions Manual – McGraw-Hill’s Taxation, by Spilker et al. Dog grooming furniture Pickup truck Commercial building Land (one acre)
5/12 9/17 10/11 10/11
$7,000 $10,000 $270,000 $80,000
Assuming Poplock does not elect §179 expensing or bonus depreciation, answer the following questions: a. What is Poplock’s year 1 depreciation expense for each asset? b. What is Poplock’s year 2 depreciation expense for each asset? a. $5,445, under the half-year convention for personal property, calculated as follows:
Asset
(1) Original Basis
Purchase Date
Quarter
Recovery period
(2) Rate
(1) × (2) Depreciation
23-Mar
1st
5 years
$5,000
20.00%
$1,000
12-May
2nd
7 years
$7,000
14.29%
$1,000
17-Sep
rd
5 years
$10,000
20.00%
$2,000
th
39 years
$270,000
0.535%
$1,445
Computer equipment Dog grooming furniture Pickup truck Building
3
11-Oct
4
$5,445
b. $13,437, calculated as follows:
Asset
(1) Original Basis
Purchase Date
Quarter
Recovery period
(2) Rate
(1) × (2) Depreciation
23-Mar
1st
5 years
$5,000
32.00%
$1,600
12-May
2nd
7 years
$7,000
24.49%
$1,714
17-Sep
rd
5 years
$10,000
32.00%
$3,200
th
39 years
$270,000
2.564%
Computer equipment Dog grooming furniture Pickup truck Building
3
11-Oct
4
$6,923 $13,437
47. [LO 2] DLW Corporation acquired and placed in service the following assets during the year: Asset
Date Acquired
Cost Basis
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Full file at https://testbankuniv.eu/Taxation-of-Business-Entities-2017-8th-Edition-Spilker-Solutions-Manual