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On April 1 of Year 1, T Company purchased and placed into service computers to be used in its operations. The computers cost $104,000 and
On April 1 of Year 1, T Company purchased and placed into service computers to be used in its operations. The computers cost $104,000 and were the only assets placed into service during the year. T elects to expense the maximum allowed under bonus depreciation and nothing under Section 179. The company's taxable income before any deduction related to the computers is $60,000. Assume the depreciation table percentages are 20% for Year 1 and 32% for Year 2. For tax purposes, what is the amount of depreciation taken on the computers for Year 1? $104,000 $60,000 $54,000 $20,800 $0
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