The books of seal company a calendar year taxpayer had

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The books of Seal Company, a calendar year taxpayer, had assets and related information as of December 31, 2012. Seal%u2019s policy is to record depreciation on December 31 by way of a journal entry. Seal also takes advantage of any early write-offs of its purchased assets allowed by law. Based on the information given calculate Seal%u2019s maximum depreciation deduction for 2012. The office equipment purchased is new and Seal%u2019s taxable income for the year is $1,000,000. Bonus depreciation in effect for 2012 is 50%. Seal purchased office equipment of $240,000 on February 1, 2012.The expensing election for 2012 is $500,000 and the threshold is $2,000,000.

  • Asset Basis Year Purchased
  • Manufacturing Tools 120,000 2011
  • Trucks 300,000 2010
  • Water Trans, Equip 150,000 2009
  • Fencing%u2014Plant 90,000 2008

Reference no: EM13577231

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