Question
Kristine sold two assets on March 20th of the current year. The first was machinery with an original basis of $70,000, currently in the fourth
Kristine sold two assets on March 20th of the current year. The first was machinery with an original basis of $70,000, currently in the fourth year of depreciation, and depreciated under the half-year convention. The second was furniture with an original basis of $35,000, placed in service during the fourth quarter, currently in the third year of depreciation, and depreciated under the mid-quarter convention. What is Kristine's depreciation deduction for the current year if the depreciation recovery period is seven years? (Use MACRS Table 1 and Table 2 and Exhibit 10-6.) (Round final answer to the nearest whole number.)
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