Please refer to the attached document for specific requirements.
Please answer the following questions and provide the requested information for Santa. (And be sure to follow the directions and answer the questions to the best of your ability to avoid getting coal in your stocking this year.)
- Complete the fixed asset schedule with the new assets.
- Using the functions embedded in the spreadsheet, the IRS tables and using formulas to complete the calculations figure the amount of depreciation for each asset. Your finished fixed asset schedule should have depreciation for 2017 and 2018 for each asset. You should also total the depreciation expense for the assets for each year. Print out the fixed asset schedule, formatted to one page, and turn in on December 5 in class. Also upload your electronic Excel file to Canvas before class.
- Calculate the gain or loss for the two disposals in 2017. Be sure to include gain or loss for each year reporting is required for the sale of both assets.
- Assuming Santa has adequate income, which of the assets obtained this year by the LLC are eligible for Sect. 179? Does Santa have any limitations on the amount of Sect. 179 he would be allowed to take? If so, what are they? If not, why not?
- Which of Santa’s new assets are eligible for 50% bonus depreciation treatment?
- Should all the new assets purchased be added to the fixed asset schedule? If not, identify any that should not be added and explain why.
- Santa has still not named his two new reindeer. If you have any ideas, please share them.
As always, please turn in any workpapers with your assignment. Your grade will be calculated on the accuracy of your calculations for depreciation and gain or loss, and your ability to follow directions.