What is the depreciation deduction on the auto

Assignment Help Accounting Basics

Reference no: EM131613303

Problem -

Max purchases a new auto in 2016 at a cost of $56,000. He uses the car 80% for business. Assuming a half-year convention, bonus depreciation but no immediate expensing, what is the depreciation deduction on the auto?

An asset (not an automobile) placed in service in June 2016 has a depreciable basis of $2,035,000, a recovery period of 5 years, and is the only asset placed in service during the year. Assuming bonus depreciation is used, a half-year convention, and the expensing election is made for the maximum eligible amount, what is the amount of cost that can be deducted in 2016 assuming the business earned taxable income of $1,000,000 before deducting any cost recovery?

An asset (not an automobile) put in service in June 2016 has a depreciable basis of $535,000 and a recovery period of 5 years. Assuming bonus depreciation is used, a half-year convention, and no expensing election, what is the maximum amount of cost that can be deducted in 2016?

An asset (not an automobile) put in service in June 2016 has a depreciable basis of $35,000 and a recovery period of 5 years and is the only asset placed in service this year. Assuming bonus depreciation is used, a half-year convention, and the expensing election is made, what is the maximum amount of cost that can be deducted in 2016 (assume no income limitation)?

On January 1, 2016, Ted purchased a small software company for $200,000. He paid $120,000 for the fixed assets of the company and $80,000 for goodwill. How much amortization may Ted deduct on his 2016 tax return for the purchased goodwill?

On June 1, 2016, Sandalwood Corporation purchases a passenger automobile for 100 percent use in its business. The automobile is in the 5 year cost recovery class and has a basis for depreciation of $30,000. Assuming that the corporation elects the accelerated method of cost recovery for the asset and does not elect to expense any of its cost or take bonus depreciation, what is the total tax depreciation deduction for the 2016 calendar tax year (Year 1)?

Reference no: EM131613303

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