The test files are below.  Feel free to print a hard copy if…

The test files are below.  Feel free to print a hard copy if you like.  If you need to leave the room for a minute or two to print or scan that is fine. There may be actually multiple questions in this document so don’t let the Canvas title “Question 1” confuse you. There are three questions on the test and it requires you to turn in a pdf and a dwg file for eaach.  Therefore you will need to upload a total of SIX files, three pdf’s and three .dwg files.  You will upload the files here using the upload link below, just like you would do if this were a homework assignment. Open the test instructions. Copy this title block (inches) drawing to your Desktop or flash drive, then insert it into the layout. Copy this title block (mm) drawing to your Desktop or flash drive, then insert it into the layout. Please upload the “.dwg” file below for question 1:

Beth’s business purchased only one asset during the current…

Beth’s business purchased only one asset during the current year (a full 12-month tax year). On December 1 Beth placed in service machinery (seven-year property) with a basis of $50,000. Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation). (Use the correct MACRS Table)

Sumner sold equipment that it uses in its business for $30,0…

Sumner sold equipment that it uses in its business for $30,000. Sumner bought the equipment a few years ago for $80,000 and has claimed $40,000 of depreciation expense. Assuming that this is Sumner’s only disposition during the year, what is the amount and character of Sumner’s gain or loss?