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Anne LLC purchased computer equipment (five-year property) years ago for $30,000 and used the half-year convention to depreciate it. Anne LLC did not take §179 or bonus depreciation in the year it acquired the computer equipment. During the current year, which is the fourth year Anne LLC owned the property, the property was disposed of on January 15. Calculate the maximum depreciation expense. (Use MACRS Table 1.) Multiple Choice $432. $1,728. $1,874. $3,456. None of the choices are correct. Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period   3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1   33.33%   20.00%   14.29%   10.00%   5.00%   3.750% Year 2  44.45 32.00 24.49 18.00 9.50 7.219 Year 3  14.81 19.20 17.49 14.40 8.55 6.677 Year 4    7.41 11.52 12.49 11.52 7.70 6.177 Year 5   11.52   8.93   9.22 6.93 5.713 Year 6     5.76   8.92   7.37 6.23 5.285 Year 7       8.93   6.55 5.90 4.888 Year 8       4.46   6.55 5.90 4.522 Year 9         6.56 5.91 4.462 Year 10         6.55 5.90 4.461 Year 11         3.28 5.91 4.462 Year 12         5.90 4.461 Year 13         5.91 4.462 Year 14         5.90 4.461 Year 15         5.91 4.462 Year 16         2.95 4.461 Year 17           4.462 Year 18           4.461 Year 19           4.462 Year 20           4.461 Year 21           2.231

Anne LLC purchased computer equipment (five-year property) years ago for $30,000 and used the half-year convention to depreciate it. Anne LLC did not take §179 or bonus depreciation in the year it acquired the computer equipment. During the current year, which is the fourth year Anne LLC owned the property, the property was disposed of on January 15. Calculate the maximum depreciation expense. (Use MACRS Table 1.) Multiple Choice $432. $1,728. $1,874. $3,456. None of the choices are correct. Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period   3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1   33.33%   20.00%   14.29%   10.00%   5.00%   3.750% Year 2  44.45 32.00 24.49 18.00 9.50 7.219 Year 3  14.81 19.20 17.49 14.40 8.55 6.677 Year 4    7.41 11.52 12.49 11.52 7.70 6.177 Year 5   11.52   8.93   9.22 6.93 5.713 Year 6     5.76   8.92   7.37 6.23 5.285 Year 7       8.93   6.55 5.90 4.888 Year 8       4.46   6.55 5.90 4.522 Year 9         6.56 5.91 4.462 Year 10         6.55 5.90 4.461 Year 11         3.28 5.91 4.462 Year 12         5.90 4.461 Year 13         5.91 4.462 Year 14         5.90 4.461 Year 15         5.91 4.462 Year 16         2.95 4.461 Year 17           4.462 Year 18           4.461 Year 19           4.462 Year 20           4.461 Year 21           2.231

SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 7BCRQ
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Anne LLC purchased computer equipment (five-year property) years ago for $30,000 and used the half-year convention to depreciate it. Anne LLC did not take §179 or bonus depreciation in the year it acquired the computer equipment. During the current year, which is the fourth year Anne LLC owned the property, the property was disposed of on January 15. Calculate the maximum depreciation expense. (Use MACRS Table 1.)

Multiple Choice

  • $432.
  • $1,728.
  • $1,874.
  • $3,456.
  • None of the choices are correct.
    Table 1 MACRS Half-Year Convention
    Depreciation Rate for Recovery Period
      3-Year 5-Year 7-Year 10-Year 15-Year 20-Year
    Year 1   33.33%   20.00%   14.29%   10.00%   5.00%   3.750%
    Year 2  44.45 32.00 24.49 18.00 9.50 7.219
    Year 3  14.81 19.20 17.49 14.40 8.55 6.677
    Year 4    7.41 11.52 12.49 11.52 7.70 6.177
    Year 5   11.52   8.93   9.22 6.93 5.713
    Year 6     5.76   8.92   7.37 6.23 5.285
    Year 7       8.93   6.55 5.90 4.888
    Year 8       4.46   6.55 5.90 4.522
    Year 9         6.56 5.91 4.462
    Year 10         6.55 5.90 4.461
    Year 11         3.28 5.91 4.462
    Year 12         5.90 4.461
    Year 13         5.91 4.462
    Year 14         5.90 4.461
    Year 15         5.91 4.462
    Year 16         2.95 4.461
    Year 17           4.462
    Year 18           4.461
    Year 19           4.462
    Year 20           4.461
    Year 21           2.231
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