Cost recovery deduction, Financial Accounting

On May 15, 2010, Your Corporation acquired an airplane (5 year recovery period, 6 year class life) for $1,450,000. Its qualified business use is 54%. Determine the maximum cost recovery deduction available in Year 1. The corporation has taxable income of $5,000,000 before the cost recovery deduction.

On November 19, 2010, Kim placed in service an automobile that cost $62,800. It is used 35% for business. What is the maximum cost recovery deduction available for the car? Kim has taxable income of $175,000 before the cost recovery deduction.

Posted Date: 3/25/2013 2:46:36 AM | Location : United States







Related Discussions:- Cost recovery deduction, Assignment Help, Ask Question on Cost recovery deduction, Get Answer, Expert's Help, Cost recovery deduction Discussions

Write discussion on Cost recovery deduction
Your posts are moderated
Related Questions

Consider an asset that cost 100000 to acquire and has an estimated salvage value of 20000. The assets is to be depreciated over four years. At the end of four years, the asset is s

how do I calculate the adjusting balance

TRUST ACCOUNTS (a) Object of trust accounts : To demonstrate that the trust funds have been applied in accordance with the trust instrument; To give details of tra

TYPES OF GIFT BY WAY OF A WILL (a) A special (or specific) legacy is a testamentary gift of a particular part of the property of the testator, which identifies that part by a s

Receiver appointed by court If appointed by the court, the receiver must give security as directed by the court. The following notification must be given: (a) The debenture h

The following transactions transpire during the liquidation of the Marks, Norris, Smith, and Savannah partnership: • Collected 90 percent of the total accounts receivable with the

The payoffs from lookback options depend on the maximum or minimum asset price during the life of the option. The payoff of a floating lookback put is the amount by which the maxim

Using CAPM's formula, Return on equity = Risk-free rate + Beta*(Expected market return - risk-free rate) With the given information, Return on equity = 1% + 0.55*(8% - 1%)

Inventories constitute a important portion of the current assets ranging from 40 percent to 60 percent for manufacturing companies. The manufacturing companies conduct investments