lScrap-Happy owns a computer (5 yr MACRS recovery period ) which they purchased 2 years ago for $1,200. For financial statement purposes, they depreciate the computer over 3 years using the half-year convention and straight line method, with no salvage value. What is their adjusted book and tax bases for the computer (after 2 years of depreciation)?

lAnswer: Book Tax

Cost Basis: $1,200 $1,200

Yr 1 Dep. (HY): (200) (240)

Yr 2 Dep.: (400) (384)

Adjusted Basis: $600 $576

I am confued: How to get (200) and (400) and why?