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

question 79

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.

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Definitions:

Stem Cells

Cells with the unique ability to develop into different types of cells in the body and to self-renew.

Simple Squamous Epithelial

A single layer of flat cells lining surfaces involved in diffusion and filtration, such as blood vessels and air sacs of the lungs.

Basement Membrane

A thin, fibrous layer that underlies and supports the epithelial tissue.

Blood Supply

Refers to the delivery of blood through the vascular system to the body's tissues, providing necessary nutrients and oxygen.