depreciated these assets under MACRS (including allowable bonus
depreciation), but did not use Section 179 expensing. Machines
acquired no new assets in 2015.
On February 4, 2016, Machines bought a new computer system for
$5,100. It sold the old computer the same day for $300. On March 15,
it sold Machine A for $6,000 and purchased a more versatile machine
for $58,000. On August 15, Machines sold bonds it had purchased
with $9,800 of the cash Sam had originally contributed to the
corporation for $10,400 to pay creditors. The business takes only the
maximum allowable MACRS depreciation deduction on assets
purchased in 2016 with no Section 179 expensing or bonus
depreciation.
Determine Machines, Inc.'s depreciation expense deductions for 2013
through 2016.
Determine the realized and recognized gains or losses on the property
transactions in 2016.
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ACC 547 Week 4 Jordan and Diana Diego (Score 85%)
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Jordan (SSN 150-66-7788) and Diana (SSN 150-67-4321) Diego are a
married couple who reside at 111 Coral Drive in Miami, FL 33156.
They have one dependent daughter, Emily (SSN 155-88-4321), age 18,
who lives at home.