Question 21 of 40.

In 2018, Myron purchased a computer to use exclusively in his home business. He depreciated it using the 200% declining balance method and the half-year convention. In February 2019, he took the computer out of service by giving it to a recycler when he purchased a more powerful computer. What happens with depreciation on his first computer?

Myron continues to depreciate it as normal in 2019.

Myron is allowed to take one-half of the normal 2019 depreciation.

Myron is allowed no depreciation on the computer for 2019.

Myron must recapture any depreciation he has previously claimed for the computer.