Question
James Bond, Inc., a calendar year corporation, placed the following assets into service this year, 2016: Intital Recovery Date Placed Asset Cost Period in Service
James Bond, Inc., a calendar year corporation, placed the following assets into service this year, 2016:
Intital Recovery Date Placed
Asset Cost Period in Service
Heavy Manufacturing Equip $ 500,000 7 years March 9
Furniture $ 197,000 7 years June 5
Transportation Equip. $ 435,000 5 years July 29
Office Equipment $ 128,500 5 years September 25
In December, James Bond decided to purchase $925,000 of additional equipment. The corporation could buy the equipment and place it into service before year end, or it could postpone the purchase until January. What effect does this decision have on the corporations depreciation with respect to the assets already in service?
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