24. Discuss the limits on cost recovery apply to listed property.
33. Orange Corporation acquired new office furniture on August 15, 2013, for $130,000. Orange did not elect immediate expensing under § 179. Orange takes additional first-year depreciation. Determine Orange's cost recovery for 2013.
35. Juan acquires a new five-year class on March 14, 2013, for $200,000. This is the only asset Juan acquired during the year. He does not elect immediate expensing under § 179. He elects not to take additional first-year depreciation. On July 15, 2014, Juan sells the asset.
a. Determine Juan's cost recovery for 2013.
b. Determine Juan's cost recovery for 2014.
36. Debra acquired the following new assets during 2013:
Date Asset Cost
April 11 Furniture $40,000
July 28 Trucks 40,000
November 3 Computers 70,000
Determine the cost recovery for the current year. Debra does not elect immediate expensing under § 179. She does take additional first-year depreciation.
45. Lori, who is single, purchased five-year class property for $200,000 and seven-year class property for $400,000 on May 20, 2013. Lori expects the taxable income derived from her business (without regard to the amount expensed under § 179) to be about $800,000. Lori wants to elect immediate § 179 expensing, but she doesn't know which asset she should expense under § 179. She elects not to take additional first-year depreciation.
a. Determine Lori's total deduction if the § 179 is first taken with respect to the five-year class asset.
b. Determine Lori's total deduction if the §179 expense is first taken with respect to the seven-year class asset.
c. What is your advice to Lori?