22. State wheter each of the following expenditures incurredduring the current year should be treated as a repair expense orcapitalized and depreciated using MACRS:
a, Replacement of the carpeting in a rental apartment.
b. Replacement of the drill bit on gas-powered post-holedigger
c. Replacement of the water in the ponds of a catfish farm
d. Replacement of spark plugs in a delivery truck
e. Repainting the exterior of a personal use auto
25.Firegly, Inc, acquires business equipment in July 2016 for$2,005,000.
a.What is Firefly's maximum Section 179 deduction for 2016?Explain
b. What happens to any portion of the annual limit not deductedin 2016? Explain
c.What is depreciable basis of the equipment? Explain
27, In 2016, Theo purchases $16,000 of Section 179 property foruse in his delivery business. During 2016, he has $12,000 intaxable income from his business.
a. What is Theo's maximum Section 179 deduction in 2016?Explain
b.Theo's business taxable income for 2017 is $5000. He purchases$1,000 of new Section 179 property in 2017. What is Theo's maximumsection 179 deduction for 2017?
22. State wheter each of the following expenditures incurredduring the current year should be treated as a repair expense orcapitalized and depreciated using MACRS:
a, Replacement of the carpeting in a rental apartment.
b. Replacement of the drill bit on gas-powered post-holedigger
c. Replacement of the water in the ponds of a catfish farm
d. Replacement of spark plugs in a delivery truck
e. Repainting the exterior of a personal use auto
25.Firegly, Inc, acquires business equipment in July 2016 for$2,005,000.
a.What is Firefly's maximum Section 179 deduction for 2016?Explain
b. What happens to any portion of the annual limit not deductedin 2016? Explain
c.What is depreciable basis of the equipment? Explain
27, In 2016, Theo purchases $16,000 of Section 179 property foruse in his delivery business. During 2016, he has $12,000 intaxable income from his business.
a. What is Theo's maximum Section 179 deduction in 2016?Explain
b.Theo's business taxable income for 2017 is $5000. He purchases$1,000 of new Section 179 property in 2017. What is Theo's maximumsection 179 deduction for 2017?
