90.2K

Verified Solution

Link Copied!

Part $2(4$ questions; $2$ points eachDuring the year $2023,$ a calendar$-$year taxpayer, Marvelous Munchies, a chain of specialty food shops, purchased assets as follows: Date Asset $\_\_\_\_$ Cost$\_\_\_$March $37$ Year Property $$700,000$October $97$ Year Property $$2,870,000$ Total $$3,570,000$ For $2023,$ Marvelous Munchies has taxable income equal to $$850,000$ unless you are told differently in a question below. Each scenario below is independent of the others unless you are told otherwise in the question. a$.$ What is the maximum depreciation that may be deducted for the assets this year, $2023,$ assuming Sec. $179$ expensing and bonus depreciation are not claimed? $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ b$.$ What is the maximum Sec. $179$ deduction allowed for $2023$ assuming that Sec. $179$ is elected for the October $9$ property only? $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ c$.$ If the taxpayer makes the election for the October $9$th equipment described in b$.$ above for the allowable amount, then how much Sec. $179$ carryover will pass to the next tax year? $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ d$.$ What is the maximum depreciation that may be deducted for the assets this year, $2023,$ assuming: $(1)$ both Sec. $179$ expensing and bonus depreciation are claimed $(2)$ they are claimed on the October $9$th property first; and $(3)$ Sec. $179$ is only claimed for the amount that will be allowable? $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

USE $2023$ TAX RULES

Answer & Explanation Solved by verified expert

See Answer