During the year, Far-Out Furniture, a manufacturer of dormitory furniture, purchased the following assets: 2/15/20X0 Machine $40,000 10/31/20X0 Equipment $50,000 12/9/20X0 Warehouse $110,000 In computing depreciation of these assets, which of the following conventions will be used by this calendar-year taxpayer? Half-year, mid-month Half-year, mid-quarter, mid-month Mid-quarter, mid-month Mid-quarter only

During the year, Far-Out Furniture, a manufacturer of dormitory furniture, purchased the following assets: 2/15/20X0 Machine $40,000 10/31/20X0 Equipment $50,000 12/9/20X0 Warehouse $110,000 In computing depreciation of these assets, which of the following conventions will be used by this calendar-year taxpayer? Half-year, mid-month Half-year, mid-quarter, mid-month Mid-quarter, mid-month Mid-quarter only

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 21CE

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Cox Construction, a company in its 10th year of business, purchased a piece of equipment on April 1, year 9, for 20,000. Cox has used it for business purposes since the initial purchase date. The company depreciated the equipment using the MACRS half-year table for 5-year assets. For tax purposes, what is the amount of accumulated depreciation expense for the equipment as of December 31, year 10? a. 6,000 b. 10,400 c. 11,600 d. 12,800
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