Problem 8-9 Modified Accelerated Cost Recovery System (MACRS), Listed Property (LO 8.2, 8.4) On February 2, 2021, Alexandra purchases a personal computer. The computer cost $2,200. Alexandra uses the computer 75 percent of the time in her accounting business, and the remaining 25 percent of the time for various personal uses. Calculate Alexandra's maximum depreciation deduction for 2021 for the computer, assuming half-year convention and she does not use bonus depreciation or make the election to expense. Click here to access the depreciation table. If required, round your answer to nearest dollar.

Problem 8-9 Modified Accelerated Cost Recovery System (MACRS), Listed Property (LO 8.2, 8.4) On February 2, 2021, Alexandra purchases a personal computer. The computer cost $2,200. Alexandra uses the computer 75 percent of the time in her accounting business, and the remaining 25 percent of the time for various personal uses. Calculate Alexandra's maximum depreciation deduction for 2021 for the computer, assuming half-year convention and she does not use bonus depreciation or make the election to expense. Click here to access the depreciation table. If required, round your answer to nearest dollar.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 24CE

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Exercise 8-25 (LO. 4) On April 5, 2020, Kinsey places in service a new automobile that cost $60,000. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 70% for business and 30% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this problem. Assume the following luxury automobile limitations: year 1: $10,100; year 2: $16,100. Compute the total depreciation allowed for: 2020: $fill in the blank 1 2021: $fill in the blank 2 Exhibit 8.5 MACRS Straight-Line Depreciation for Personal Property Assuming Half-Year Convention For Property Placed in Service after December 31, 1986 Other Recovery Years Last Recovery Year MACRS Class % First Recovery Year Years % Year % 3-year 16.67 2–3 33.33 4 16.67 5-year 10.00 2–5 20.00 6…
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