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ACCT 310-81 ACCT310-81 ACCT/310-81 Fed. Tax. II – Week 2 – HW.docx
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ACCT 310-81 ACCT310-81 ACCT/310-81 Fed. Tax. II – Week 2 – HW.docx
Diana Castillo Federal Taxation II
Week 2 HW – “Individuals”Answers:
1a.
Computer $400,000
Furniture 225,000
$625,000 (To depreciate)
(500,000)(Sec. 179)
$125,000 to apply MACRS percentage rate
Both assets have a recovery period of 7 years at 14.29%
$125,000 x 0.1429 = $17,862.50
Total Depreciation for 2016 would be 517,862.50
1b.
Description
ACCT 310-81 ACCT310-81 ACCT/310-81 Fed. Tax. II – Week 2 – HW.docx
Diana Castillo Federal Taxation II
Week 2 HW – “Individuals”Answers:
1a.
Computer $400,000
Furniture 225,000
$625,000 (To depreciate)
(500,000)(Sec. 179)
$125,000 to apply MACRS percentage rate
Both assets have a recovery period of 7 years at 14.29%
$125,000 x 0.1429 = $17,862.50
Total Depreciation for 2016 would be 517,862.50
1b. Would be the same as 1a due to the fact that both assets have the same recovery period.
1c. My advise to Flamingo regarding the 179 deduction based on my results is that it wouldn’t matter which of the two was done first. As per the text on pg. 10-6 it states that “The election is made on an annual basis and the taxpayer must select the assets to which the deduction applies”. With that being said as along as the amount does not surpass the
