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Calculate tax depreciation and make an adjustment

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Reference no: EM132205172

Mystic Grille Asset List

In addition to the Mystic Grille Financials, below is a list of multiple assets owned by the company summarized below:

• Original Building placed into service on 4/20/2005, purchased for $320,000.

• Old Furniture & Fixtures placed into service on 3/2/2011, purchased for $32,000.
$13,000 of Sec. 179 deductions were taken at the time of purchase. The equipment was sold on September 15, in the current year.

• Delivery Truck "Tyler" placed into service on 8/11/2012, purchased for $17,000. No Sec. 179 deduction was taken at the time of purchase.

• Delivery Truck "Trevor" placed into service on 11/8/2013, purchased for $27,000. No Sec. 179 deduction was taken at the time of purchase.

• In 2005, Mystic Grille started out as a local business which did well in New Orleans. Because business has grown over the years, they opened a second location in Mystic Falls. The New Building was purchased on June 15, 2018 for $650,000.

• Delivery Truck "Cole" placed into service on 7/15/2018, purchased for $27,000.

• Delivery Van "Rose" placed into service on 8/8/2018, purchased for $31,000.

• Cooking Equipment placed into service 10/1/2018, purchased for 225,000.

• New Furniture & Fixtures placed into service 10/1/2018 purchased for 450,000.

• Office Furniture placed into service on 10/31/2018, purchased for 75,000.

NOTE: Assume that all property listed above is owned by Klaus and used 100% in his business. Any property listed above placed in service in a certain year was the only property placed into service in that year. Klaus calculates book depreciation under the straight line method. You will need to calculate tax depreciation and make an adjustment to the financial statements.

Reference no: EM132205172

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