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YEAR 2021 Woolard Supplies (a sole proprietorship) has taxable income in 2021 of $240,000 before...

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Accounting

YEAR 2021 Woolard Supplies (a sole proprietorship) has taxable income in 2021 of $240,000 before any depreciation deductions (179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture does not qualify for bonus depreciation. (Do not round intermediate calculations. Round your intermediate calculations and final answers to the nearest whole dollar amount.)

Asset Placed In Service Basis
Office furniture (used) March 20 $ 1,185,000

a. If Woolard elects $50,000 of 179, what is Woolards total depreciation deduction for the year?

Woolards total depreciation

b. If Woolard elects the maximum amount of 179 for the year, what is the amount of deductible 179 expense for the year? What is the total depreciation that Woolard may deduct in 2021? What is Woolard's 179 carryforward amount to next year, if any?

Deductible 179 expense
Total depreciation deduction $240,000
179 carryforward

c. Woolard is concerned about future limitations on its 179 expense. How much 179 expense should Woolard expense this year if it wants to maximize its depreciation this year and avoid any carryover to future years?

179 expense:

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