Problem:
Calculate the amount of depreciation or amortization that the corporation may deduct in 2023 using the information below. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. If no entry is necessary, enter a zero (0). Unless otherwise indicated, no Sec. 179 election or 100% expensing was (will be) made. Also disregard any allowable bonus depreciation. Situation Answer 1. Warehouse purchased by AB Corporation for $780,000 in 2015 to store inventory. 2. New machinery purchased by CD, Inc., from an unrelated party on May 21, 2023, for $76,000. CD elects to deduct the maximum amount and has $210,000 in taxable income. Note that Sec. 179 election has been made. 3. EF, Inc., purchased office furniture in January 2023 for $15,000 and computers in December 2023 for $42,000. 4. Patent worth $360,000 acquired by GH Corp. in the purchase of LM Corp. in 2019 for new genetically modified seeds. 5. JK, Inc., purchased 5-year property on April 15, 2023, for $88,000. 6. Machinery with a 7-year recovery period purchased from an unrelated party June 1, 2023, for $142,000. Taxpayer elects to deduct the maximum amount and has $100,000 of taxable income.