Yasmin purchased two assets during the current year. On May 26th Yasmin placed in service computer equipment (five-year property) with a basis of $29,000 and on December 9th placed in service machinery (seven-year property) with a basis of $29,000. Calculate the maximum depreciation deduction (ignoring §179 and bonus depreciation). (Use MACRS Table 2.) (Round final answer to the nearest whole number.) TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarterDepreciation Rate for Recovery Period5-Year7-YearYear 135.00%25.00%Year 226.0021.43Year 315.6015.31Year 411.0110.93Year 511.018.75Year 61.388.74Year 78.75Year 81.09TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarterDepreciation Rate for Recovery Period5-Year7-YearYear 125.00%17.85%Year 230.0023.47Year 318.0016.76Year 411.3711.97Year 511.378.87Year 64.268.87Year 78.87Year 83.34TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarterDepreciation Rate for Recovery Period5-Year7-YearYear 115.00%10.71%Year 234.0025.51Year 320.4018.22Year 412.2413.02Year 511.309.30Year 67.068.85Year 78.86Year 85.53TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarterDepreciation Rate for Recovery Period5-Year7-YearYear 15.00%3.57%Year 238.0027.55Year 322.8019.68Year 413.6814.06Year 510.9410.04Year 69.588.73Year 78.73Year 87.64

Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…

Yasmin purchased two assets during the current year. On May 26th Yasmin placed in service computer equipment (five-year property) with a basis of $29,000 and on December 9th placed in service machinery (seven-year property) with a basis of $29,000. Calculate the maximum depreciation deduction (ignoring §179 and bonus depreciation). (Use MACRS Table 2.) (Round final answer to the nearest whole number.)

Yasmin purchased two assets during the current year. On May 26th Yasmin placed in service computer equipment (five-year property) with a basis of $29,000 and on December 9th placed in service machinery (seven-year property) with a basis of $29,000. Calculate the maximum depreciation deduction (ignoring §179 and bonus depreciation). (Use MACRS Table 2.) (Round final answer to the nearest whole number.)

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 7BCRQ

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