Deirdre's business purchased two assets during the current year (a full 12-month tax year). deirdre placed in service computer equipment (5-year property) on january 20 with a basis of $15,000 and machinery (7-year property) on september 1 with a basis of $15,000. calculate the maximum depreciation expense, (ignoring §179 and bonus depreciation). (use macrs half-year convention) (round final answer to the nearest whole number.)
a. $6,000.
b. $5,144.
c. $1,286.
d. $5,786.
e. none of the choices are correct.
answer is 5144. just took quiz
D. $5,786.
Explanation:
The mid-quarter convention applies, so the calculation of property and the machinery is 4 quarter property.
depreciation expense on property = $15000*0.35
= $2520
depreciation expense on machinery = 15000*0.0357
= $536
total depreciation expense = $5250 + $536
= $5786
Therefore, The maximum depreciation expense, (ignoring §179 and bonus depreciation). (Use MACRS Half-Year Convention) is $5786
answer; i do believe that the correct answer is ; ///are valued more highly than their cost;
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