Tax purposes with respect to generating the lowest possible taxable income

Tax purposes with respect to generating the lowest possible taxable income

Tax purposes with respect to generating the lowest possible taxable income for 2010. what is the best answer for.. W is in the business of manufacturing crates. He purchased some more crate making equipment and is asking you, as his CPA, W purchased and placed in service $1,750,000 worth of equipment in the first month of the tax year.

Using all potential depreciation related deductions

Determine how much depreciation W can take for the year of the purchase. Presume that the crate making equipment falls in the 7 year life for MACRS.

Using the same facts, except that the equipment was purchased and placed in service in January 2009, determine the tax depreciation deductions available to W in 2009. Using the same facts, except that the equipment was purchased and placed in service in the last month of 2011, determine the tax depreciation available to W in 2011.

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