Question 1 options:
Assume the Kansas City Chiefs have purchased some assets in 2014 (listed in questions 1 - 3) and elect to not take Section 179 expense or bonus depreciation provided by Congress.
The Chiefs purchased a new training facility for $800,000. (Jamaal Charles is putting too many miles on his Escalade) This is a 39 year asset, placed in service 1/4/14
Determine the depreciation deduction for 2014 for the training facility. Round your answer to the nearest whole dollar. Please do not put dollar signs in front of your answer. Use pages 7-6 to 7-11 in your textbook for guidance and tables.
Assume the Kansas City Chiefs have purchased some assets in 2014 (listed in questions 1 - 3) and elect to not take Section 179 expense or bonus depreciation provided by Congress.
The Chiefs purchased a new training facility for $800,000. (Jamaal Charles is putting too many miles on his Escalade) This is a 39 year asset, placed in service 1/4/14
Determine the depreciation deduction for 2014 for the training facility. Round your answer to the nearest whole dollar. Please do not put dollar signs in front of your answer. Use pages 7-6 to 7-11 in your textbook for guidance and tables.
Question 2 options:
Refer back to Question #1.
Assume the Chiefs also purchased office furniture for $5,000. (Andy Reid’s bum is getting sore with the old stuff)
This is a 7 year asset,
placed in service on 3/1/14.
Hint: You may need to use this link:
IRS MACRS Tables
Calculate depreciation for 2014 for the office furniture. Round your answer to the nearest dollar.
Question 3 options:
Refer back to question #1.
Assume the Chiefs purchased buses for $100,000 to drop players off at home after they’ve been cut from the team.
Ouch! The buses are a 5 year
asset, placed in service on
8/1/14.
Determine the 2014 depreciation deduction for the Chiefs. Round your answer to the nearest dollar if necessary.
Question 4
(1 point)
Question 4 options:
Refer back to questions #1-
3. Assume instead that the Chiefs elected 50% bonus
on all eligible assets listed above and still did not take a Section
179 deduction. Hint: only personal property (not real property) is
eligible for bonus depreciation. Also assume the
buses were placed in service on 11/1/14 instead of 8/1/14.
Determine the depreciation deduction for the $800,000 training facility given the information mentioned above.
Question 5
(1 point)
Question 5 options:
Determine the 2014 depreciation deduction
for the $5,000 office furniture placed in service on 3/1/14 using the
information provided above.
Hint: You may need to use this link:
Question 6
(1 point)
Question 6 options:
Refer to the information listed above for the Chiefs. Determine the depreciation deduction for 2014 for the buses,
assuming bonus depreciation and placed in service date of 11/1/14. Recall the buses were purchased for $100,000.
Question 8
(1 point)
Is land allowed to be depreciated?
Question 8 options:
Yes. Sometimes, land loses value
Question 9
(2 points)
On August 8, 2014, Holly purchased a residential apartment building. The cost basis assigned to the building is
$800,000.
Determine the depreciation deduction for 2014:
Determine the depreciation deduction for 2015:
Question 10
(3 points)
Give the MACRS depreciation life of the following assets:
Question 10 options:
A computer
Residential real estate
Business furniture
Commercial real estate
Land – 5. Not depreciated
An automobile
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Question 11
(2 points)
Question 11 options:
During 2014, William purchases the following capital assets for use in his catering business:
A new passenger automobile purchased on September 30th for $21,500
Baking equipment purchased on June 30th for $6,500
The business was profitable and had taxable income of $150,000 before considering depreciation deductions.
William elects to take bonus depreciation on
the auto but does not take Section 179 expense on the auto. Determine
the 2014 depreciation expense for the automobile (hint, this is listed
property):
Question 12
(1 point)
Question 12 options:
On February 2, 2014, Alexandra purchases a personal computer for her home. The computer cost $3,000. Alexandra
uses the computer 80 percent of the time in her accounting business, and the remaining 20 percent of the time for
various personal uses. Calculate Alexandra’s maximum depreciation deduction for 2014 for the computer, assuming
she does not make the election to expense or take bonus depreciation.
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Question 13
(1 point)
Deborah purchases a new $30,000 car in 2014 to use
exclusively in her business. If Deborah does not elect to expense or
take bonus depreciation in 2014 and holds the car until it is fully
depreciated, how many years will this
take?
Question 13 options:
Question 14
(2 points)
Question 14 options:
Derek purchases a small business from Art on September 1, 2014. He paid the following amounts for the business:
$220,000
Goodwill
$40,000
Covenant not to compete
$45,000
Total $305,000
How much of the $305,000 purchase price is for Section 197 intangible assets?
What amount can Derek deduct on his 2014 tax return
as Section 197 intangible amortization? Please round your answer to the
nearest dollar, no decimals.
