If a item is purchased in September how is the MACRS depreciation calculated for either a 5 year, 7 year, or 10 year life? I'm assuming after the first year I would calculate normally but I'm not sure about the first year.

If a item is purchased in September how is the MACRS depreciation calculated for either a 5 year, 7 year, or 10 year life? I'm assuming after the first year I would calculate normally but I'm not sure about the first year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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