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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.

Respuesta :

Karabo99

Answer:

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

mommy42507

Answer:

answer is 5144. just took quiz

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