Question
In 2016, Olga Co. purchased a piece of business-use equipment for $100,000. The equipment has a 7-year MACRS GDS recovery period and is depreciated under
In 2016, Olga Co. purchased a piece of business-use equipment for $100,000. The
equipment has a 7-year MACRS GDS recovery period and is depreciated under MACRS
GDS (no SL election). The equipment was placed in service on September 10, 2016. This
was the only asset that Olga Co. placed in service in 2016. Olga Co. did not elect Section
179 deduction and elected out of Section 168(k) bonus depreciation.
What is Olga Co.'s depreciation deduction for
2016
(the year the asset was placed in service)?
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Introduction to Managerial Accounting
Authors: Peter C. Brewer, Ray H Garrison, Eric Noreen
8th edition
1259917061, 978-1259917066
