Question
Problem 10-55 (LO 10-2; LO 10-3) [The following information applies to the questions displayed below.] Harris Corp. is a technology start-up and is in its
Problem 10-55 (LO 10-2; LO 10-3)
[The following information applies to the questions displayed below.]
Harris Corp. is a technology start-up and is in its second year of operations. The company didnt purchase any assets this year but purchased the following assets in the prior year:
Placed in | |||
Asset | Service | Basis | |
Office equipment | August 14 | $ | 10,000 |
Manufacturing equipment | April 15 | 68,000 | |
Computer system | June 1 | 16,000 | |
Total | $ | 94,000 | |
|
Harris did not know depreciation was tax deductible until it hired an accountant this year and didnt claim any depreciation deduction in its first year of operation. (Use MACRS Table 1 and Table 2.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.)
Problem 10-55 Part a
a. What is the maximum amount of depreciation deduction Harris Corp. can deduct in its second year of operation?
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