Question 18

On November 1 2021, TYE Company sold equipment (five-year recovery property) that had a capitalized tax basis of $300,000. The equipment was purchased on August 15, 2019 and was TYE Companys only purchase of depreciable property in 2019. What is the MACRS depreciation deduction for the equipment in 2021?

Group of answer choices

$28,800

No MCRS depreciation is allowed in 2021.

$57,600

Deduct the entire remaining tax basis of the equipment as depreciation in 2021.