Sanjuro Corporation (a calendar-year corporation)purchased and placed in service the following assets during 2014: All assets are used 100% for business use.The warehouse building does not include the cost of the land on which it is located which was an additional $1,000,000.The corporation has $3,000,000 income from operations before calculating depreciation deductions.Sanjuro Corporation made whatever elections were necessary to maximize its overall depreciation deduction for 2014.
What is Sanjuro Corporation's cost recovery deduction for the computer equipment for 2015?

Question

Sanjuro Corporation (a calendar-year corporation)purchased and placed in service the following assets during 2014:  All assets are used 100% for business use.The warehouse building does not include the cost of the land on which it is located which was an additional $1,000,000.The corporation has $3,000,000 income from operations before calculating depreciation deductions.Sanjuro Corporation made whatever elections were necessary to maximize its overall depreciation deduction for 2014.
What is Sanjuro Corporation's cost recovery deduction for the computer equipment for 2015?

Quizplus · Accepted Answer

50% bonus depreciation was taken in 2014; $110,000 x .32 = $35,200; To maximize its deductions,it would claim Sec.179 expensing on the used office equipment in 2014.

Sanjuro Corporation (A Calendar-Year Corporation)purchased and Placed in Service the Following