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6. ADS and MACRS. (Obj. 1) Peter purchased the following new properties to use in his business. Equipment: Acquired in April, 2012 at a cost

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6. ADS and MACRS. (Obj. 1) Peter purchased the following new properties to use in his business. Equipment: Acquired in April, 2012 at a cost of $144,000 Furniture: Acquired in March, 2015 at a cost of $84,000 Computer: Acquired in July, 2017 at a cost of $10,000 a. Compute Peter's 2018 depreciation expense. Peter has never elected Section 179, nor has he ever elected out of taking bonus depreciation. Peter elects ADS straight-line method with a ten-year life to depreciate the equipment. He uses regular (accelerated) MACRS to depreciate the furniture and computer. The half-year convention applies to all three properties. b. Same as in Part a., except that the mid-quarter convention applied to all personal property placed in service in 2015. c. Same as in Part a. except that Peter purchased each of these properties in 2018 and elected out of bonus depreciation. Compute depreciation for each of these properties for 2018 using the regular MACRS depreciation allowed for each property without electing Section 179. The equipment is 7-year property and ADS is not elected. 6. ADS and MACRS. (Obj. 1) Peter purchased the following new properties to use in his business. Equipment: Acquired in April, 2012 at a cost of $144,000 Furniture: Acquired in March, 2015 at a cost of $84,000 Computer: Acquired in July, 2017 at a cost of $10,000 a. Compute Peter's 2018 depreciation expense. Peter has never elected Section 179, nor has he ever elected out of taking bonus depreciation. Peter elects ADS straight-line method with a ten-year life to depreciate the equipment. He uses regular (accelerated) MACRS to depreciate the furniture and computer. The half-year convention applies to all three properties. b. Same as in Part a., except that the mid-quarter convention applied to all personal property placed in service in 2015. c. Same as in Part a. except that Peter purchased each of these properties in 2018 and elected out of bonus depreciation. Compute depreciation for each of these properties for 2018 using the regular MACRS depreciation allowed for each property without electing Section 179. The equipment is 7-year property and ADS is not elected

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