Accounting : Calculate the maximum depreciation expense

Accounting : Calculate the maximum depreciation expense

Subject: Business    / Accounting
Question
1. Columbia LLC placed in service on October 9, 2013 machinery and equipment (7-year property) with a basis of $2,150,000. Assume that Columbia has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179expensing (but ignoring bonus expensing) for the year, rounded to the nearest wholenumber:3. Judy is a self employed musician who performs for a variety of events.

2. This year Judy was fined $250 by the city for violating the city’s noise ordinance with a relatively loud performance. As a consequence Judy contributed $1,000 to a campaign committeeformed to recall the city’s mayor. Judy normally hires three part-time employees to helpher schedule events and transport equipment. Judy paid a total of $33,000 to heremployees through June of this year. In June Judy fired her part-time employees andhired her husband to replace them. However, Judy paid him $55,000 rather than $33,000.Judy is on the cash method and calendar year, and she wants to know what amount ofthese expenditures is deductible as business expenses.4. Sam