On February 2, 2022, Alexandra purchases a personal computer. The computer cost $4,920. Alexandra uses the computer 85 percent of the time in her accounting business, and the remaining 15 percent of the time for various personal uses. Calculate Alexandra's maximum depreciation deduction for 2022 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.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
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Problem 29P
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On February 2, 2022, Alexandra purchases a personal computer. The computer cost $4,920. Alexandra uses the computer 85 percent of the time in her accounting business, and
the remaining 15 percent of the time for various personal uses. Calculate Alexandra's maximum depreciation deduction for 2022 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.
Transcribed Image Text:On February 2, 2022, Alexandra purchases a personal computer. The computer cost $4,920. Alexandra uses the computer 85 percent of the time in her accounting business, and the remaining 15 percent of the time for various personal uses. Calculate Alexandra's maximum depreciation deduction for 2022 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.
TABLE 8.2
Recovery
Year
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
ACCELERATED DEPRECIATION FOR PERSONAL PROPERTY ASSUMING
HALF-YEAR CONVENTION (FOR PROPERTY PLACED IN SERVICE AFTER
DECEMBER 31, 1986)
3-Year
(200% DB)
33.33
44.45
14.81*
7.41
*Switch to straight-line depreciation.
5-Year
(200% DB)
20.00
32.00
19.20
11.52 *
11.52
5.76
7-Year
(200% DB)
14.29
24.49
17.49
12.49
8.93 *
8.92
8.93
4.46
10-Year
(200% DB)
10.00
18.00
14.40
11.52
9.22
7.37
6.55 *
6.55
6.56
6.55
3.28
15-Year
(150% DB)
5.00
9.50
8.55
7.70
6.93
6.23
5.90 *
5.90
5.91
5.90
5.91
5.90
5.91
5.90
5.91
2.95
20-Year
(150% DB)
3.750
7.219
6.677
6.177
5.713
5.285
4.888
4.522
4.462 *
4.461
4.462
4.461
4.462
4.461
4.462
4.461
4.462
4.461
4.462
4.461
2.231
Transcribed Image Text:TABLE 8.2 Recovery Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 ACCELERATED DEPRECIATION FOR PERSONAL PROPERTY ASSUMING HALF-YEAR CONVENTION (FOR PROPERTY PLACED IN SERVICE AFTER DECEMBER 31, 1986) 3-Year (200% DB) 33.33 44.45 14.81* 7.41 *Switch to straight-line depreciation. 5-Year (200% DB) 20.00 32.00 19.20 11.52 * 11.52 5.76 7-Year (200% DB) 14.29 24.49 17.49 12.49 8.93 * 8.92 8.93 4.46 10-Year (200% DB) 10.00 18.00 14.40 11.52 9.22 7.37 6.55 * 6.55 6.56 6.55 3.28 15-Year (150% DB) 5.00 9.50 8.55 7.70 6.93 6.23 5.90 * 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 20-Year (150% DB) 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 * 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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