Bolton Corporation uses the calendar year as its tax year. It purchases and places into...
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Accounting
Bolton Corporation uses the calendar year as its tax year. It purchases and places into service $1.5 million of property during 2018 to use in its business:
a. What is Bolton's total depreciation deduction for 2018 if Bolton elects out of bonus depreciation and does not claim Sec. 179 expensing? (Use MACRS rates to three decimal places, X.XXX%. Round the MACRS depreciation to the nearest dollar.)
b. Bolton claims Sec. 179 expensing for $630,000 of the office furniture's cost and $370,000 fo the office machinery's cost.
c. Bolton claims Sec. 179 expensing for $610,000 of the office furniture's cost and $390,000 of the office machinery's cost.
Placed into service
Cost
Recovery Period
Apartment building*
May 1
$480,000
27.5 years
Office furniture
June 23
$630,000
7 years
Office machinery
October 15
$390,000
5 years
* $100,000 of the cost pertains to the land on which the apartment building is located
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