Boxer LLC Has Acquired Various Types of Assets Recently Boxer Did Not Elect §179 Expense or Potential Bonus Depreciation

question 75

Short Answer

Boxer LLC has acquired various types of assets recently. Below is a list of assets acquired during 2013 and 2014: $$\begin{array} { | l | r | l | l | } \hline \text { Asset } & { \text { Cost Basis } } & \text { Convention } & \text { Date Placed in } \\& & & \text { Service } \\\hline \text { Machinery } & 25,000 & \text { Half year } & \text { January 24, 2013 } \\\hline \text { Warehouse } & 800,000 & \text { Mid month } & \text { August 1, 2013 } \\\hline \text { Furniture } & 100,000 & & \text { October 5, 2014 } \\\hline \text { Computer equipment } & 65,000 & & \text { October 10, 2014 } \\\hline \text { Office equipment } & 34,000 & & \text { September 28, 2014 } \\\hline \text { Automobile } & 35,000 & & \text { July 15, 2014 } \\\hline \text { Office building } & 800,000 & & \text { September 24, 2014 } \\\hline\end{array}$$ Boxer did not elect §179 expense or potential bonus depreciation in 2013, but would like to elect §179 expense for 2014 (assume that taxable income is sufficient). Calculate Boxer's maximum depreciation expense for 2014, rounded to the nearest whole number (ignore bonus depreciation for 2014). If necessary, use the 2013 luxury automobile limitation amount for 2014 and assume that the 2013 §179 limits are extended to 2014.

Apply concepts of loan amortization and interest calculations to personal and business finance decisions.

Evaluate investment opportunities using different rates of return, including internal rates of return and effective annual rates.

Analyze the impact of different compounding frequencies on investment returns and loan costs.

Determine the value of cash flows occurring at different time periods using appropriate discount rates.

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Definitions:

Academic Demands

The requirements and expectations placed on students relating to their educational coursework and activities.

Excessive Daytime

This term is incomplete without additional context but generally could refer to excessive daytime sleepiness, a condition characterized by persistent sleepiness during daytime hours, regardless of adequate nighttime sleep.

Overwhelming Responsibilities

Tasks or duties that are excessively challenging or demanding, causing stress or difficulty in managing.

Warm Bath

A bathing practice using water at a temperature that is comfortable and soothing, often used for relaxation or therapeutic purposes.