At the beginning of the year, Anna began a calendar-year business and placed in service the following

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At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the year:


Asset

Date Acquired

Cost Basis

Computers

1/30

$28,000

Office desks

2/15

$32,000

Machinery

7/25

$75,000

Office building

8/13

$400,000


Assuming Anna does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions:

a. What is Anna’s year 1 cost recovery for each asset?

b. What is Anna’s year 2 cost recovery for each asset?

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Related Book For  book-img-for-question

Taxation Of Individuals And Business Entities 2021

ISBN: 9781260247138

12th Edition

Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham

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