44, Rogran Corporation purchases turning lathes costing$1,033,000 and buses costing $975,000 in June of the current year.The lathes are 7year MACRS property, and the buses are 5 year MACRSproperty.
a. What is Rograin's maximum Section 179 deduction?
b. Assuming that Rograin deducts the maximum Section 179expense, what are the depreciable basis of the lathes and thebuses?
c. If Rograin wants to maximize its cost recovery this year, howmuch first year depreciation may it deduct in addition to theSection 179 deduction?
50. In july 2016, Surecut Sawmills buy office furnitre for$570,000
a. Compare cost-recovery deductions using maximum, minimum, andintermediate methods over the recovery period of the equipment.
b. Explain why Surecut would elect to use each of thesemethods.
44, Rogran Corporation purchases turning lathes costing$1,033,000 and buses costing $975,000 in June of the current year.The lathes are 7year MACRS property, and the buses are 5 year MACRSproperty.
a. What is Rograin's maximum Section 179 deduction?
b. Assuming that Rograin deducts the maximum Section 179expense, what are the depreciable basis of the lathes and thebuses?
c. If Rograin wants to maximize its cost recovery this year, howmuch first year depreciation may it deduct in addition to theSection 179 deduction?
50. In july 2016, Surecut Sawmills buy office furnitre for$570,000
a. Compare cost-recovery deductions using maximum, minimum, andintermediate methods over the recovery period of the equipment.
b. Explain why Surecut would elect to use each of thesemethods.
