PROBLEM -
A. For the properties listed below compute the depreciation during the useful life of the property. Assume that all property is post-1986 Property and that 15 percent of the cost of residential and commercial properties is assigned to land.
B. Include columns for the applicable AMT depreciation and the accompanying AMT adjustment. You can follow the example given on the attached spread sheet.
TIP: The AMT adjustment for personal property is the difference between the DEPRECIATION taken under MACRS and the amount determined by using 150% declining balance (DB) method under ADS. The AMT adjustment for real property is the difference between the DEPRECIATION taken under MACRS and the amount determined by using strait line (SL) method under ADS.
Note: These are the suggested columns. Make sure that all the columns fit on one page.
Asset Description
Class Life
Date Placed in Service
Cost Basis
Class Life
Recovery Rate
MACRS Accumulated Depreciation
Adjusted Basis
AMT Rate
AMT Recovery Amount
AMT Accumulated Depreciation
AMT Adjustment
AMT Adjusted Basis
Attachment:- Assignment File.rar