Question
Baker, Inc., purchases office furniture (7-year MACRS property) costing $1,011,000 and a computer system (5-year MACRS property) costing $1,011,000 in 2018. Assume that Baker elects
Baker, Inc., purchases office furniture (7-year MACRS property) costing $1,011,000 and a computer system (5-year MACRS property) costing $1,011,000 in 2018.
Assume that Baker elects not to claim bonus depreciation.
Refer to the MACRS Depreciation Table to answer the following question.
Hint: Maximize the Section 179 election effect.
Note: Round all values to the nearest whole dollar.
The maximum cost-recovery deduction in 2018 is $
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Cornerstones of Managerial Accounting
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
2nd Canadian edition
978-0176721237, 978-0176530884
