Question
Harris Corp. is a technology start-up currently in its second year of operations. The company didnt purchase any assets this year but purchased the following
Harris Corp. is a technology start-up currently in its second year of operations. The company didnt purchase any assets this year but purchased the following assets in the prior year: Placed in Asset Service Basis Office equipment August 14 $ 11,000 Manufacturing equipment April 15 78,000 Computer system June 1 26,000 Total $ 115,000 Harris did not know depreciation was tax deductible until it hired an accountant this year and didnt claim any depreciation deduction in its first year of operation. (Use MACRS Table 1 and Table 2.) Problem 10-55 Part a (Algo)
b. What is the basis of the office equipment at the end of the second year?
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