Determine the MACRS cost recovery deductions for 2018 and 2019 on the following assets that were purchased for use in a farming business on July 15, 2018. The taxpayer does not wish to use the Section 179 election and elects out of bonus depreciation.
?
$$\begin{array} { l r }
\text { Assets } & \text { Cost } \
\text { Breeding hogs } & \$ 20,000 \
\text { Dairy cattle } & 20,000 \
\text { Tractor } & 20,000
\end{array}$$
a.Breeding hogs depreciation:?Total 2018 Breeding hogs Cost Recovery Deduction (show your calculations)Total 2019 Breeding hogs Cost Recovery Deduction (show your calculations)
b.Dairy cattle depreciation:?Total 2018 Dairy Cattle Cost Recovery Deduction (show your calculations)Total 2019 Dairy Cattle Cost Recovery Deduction (show your calculations)
c.Tractor depreciation:?Total 2018 Tractor Cost Recovery Deduction (show your calculations)Total 2019 Tractor Cost Recovery Deduction (show your calculations)? d. Assume the B reeding hogs are sold for $\$ 25,000$ on February 1, 2020. Determine the adjusted basis of the hogs as of the sale date and the realized gain (loss) on the sale. Show your calculations.
Adjusted basis $\quad $ $\quad $ $\quad $$\underline{\quad\quad}$
Realized gain (loss) $\quad $ $\quad $$\underline{\quad\quad}$

Question

Determine the MACRS cost recovery deductions for 2018 and 2019 on the following assets that were purchased for use in a farming business on July 15, 2018. The taxpayer does not wish to use the Section 179 election and elects out of bonus depreciation.
?
 $$\begin{array} { l r } 
\text { Assets } & \text { Cost } \
\text { Breeding hogs } & \$ 20,000 \
\text { Dairy cattle } & 20,000 \
\text { Tractor } & 20,000
\end{array}$$ 
a.Breeding hogs depreciation:?Total 2018 Breeding hogs Cost Recovery Deduction (show your calculations)Total 2019 Breeding hogs Cost Recovery Deduction (show your calculations)
b.Dairy cattle depreciation:?Total 2018 Dairy Cattle Cost Recovery Deduction (show your calculations)Total 2019 Dairy Cattle Cost Recovery Deduction (show your calculations)
c.Tractor depreciation:?Total 2018 Tractor Cost Recovery Deduction (show your calculations)Total 2019 Tractor Cost Recovery Deduction (show your calculations)? d. Assume the B reeding hogs are sold for $\$ 25,000$ on February 1, 2020. Determine the adjusted basis of the hogs as of the sale date and the realized gain (loss) on the sale. Show your calculations.
Adjusted basis $\quad $ $\quad $ $\quad $$\underline{\quad\quad}$
Realized gain (loss) $\quad $ $\quad $$\underline{\quad\quad}$

Quizplus · Accepted Answer

The Answer of Determine the MACRS cost recovery deductions for 2018 and 2019 on the following assets that were purchased for use in a farming business on July 15, 2018. The taxpayer does not wish to use the Section 179 election and elects out of bonus depreciation.
?
 $$\begin{array} { l r } 
\text { Assets } & \text { Cost } \
\text { Breeding hogs } & \$ 20,000 \
\text { Dairy cattle } & 20,000 \
\text { Tractor } & 20,000
\end{array}$$ 
a.Breeding hogs depreciation:?Total 2018 Breeding hogs Cost Recovery Deduction (show your calculations)Total 2019 Breeding hogs Cost Recovery Deduction (show your calculations)
b.Dairy cattle depreciation:?Total 2018 Dairy Cattle Cost Recovery Deduction (show your calculations)Total 2019 Dairy Cattle Cost Recovery Deduction (show your calculations)
c.Tractor depreciation:?Total 2018 Tractor Cost Recovery Deduction (show your calculations)Total 2019 Tractor Cost Recovery Deduction (show your calculations)? d. Assume the B reeding hogs are sold for $\$ 25,000$ on February 1, 2020. Determine the adjusted basis of the hogs as of the sale date and the realized gain (loss) on the sale. Show your calculations.
Adjusted basis $\quad $ $\quad $ $\quad $$\underline{\quad\quad}$
Realized gain (loss) $\quad $ $\quad $$\underline{\quad\quad}$

Determine the MACRS Cost Recovery Deductions for 2018 and 2019