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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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