Question
In 2022, Bizarro Corp., a calendar year corporation, acquired and placed in service the assets listed below. Asset Placed in Service Cost Recovery Period Computer
In 2022, Bizarro Corp., a calendar year corporation, acquired and placed in service the assets listed below. Asset Placed in Service Cost Recovery Period Computer 11/15/2022 1,350,000 5 years Machine 4/12/2022 1,500,000 7 years Warehouse 12/2/2022 3,000,000 39 years Assume (1) no bonus depreciation, (2) no Section 179 expense for question. 1. What convention is used to depreciate each asset and why? 2. What is the total depreciation expense Bizarro Corp. may deduct in 2022? 3. What is Bizzaro Corps's depreciation expense in 2023? 4. Assume Bizzaro Corp sold all assets on August 2, 2024. What is Bizarro Corp's depreciation expense in 2024? 5. Explain (in words, not calculations) what would be different is the Computer was placed in service on September 30, 2022?
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