Question
Rex Corporation, a calendar year taxpayer, purchases machinery and equipment (7-year property) for its business in 2019 and does not elect to use either Section
Rex Corporation, a calendar year taxpayer, purchases machinery and equipment (7-year property) for its business in 2019 and does not elect to use either Section 179 expensing or bonus depreciation for any of its 2019 purchases. Rex places the property in service as follows during 2020:
Date Place in Service Acquisition Cost
February 12, 2019 $150,000
June 8, 2019 $250,000
November 28, 2019 $350,000
What is Rexs allowable MACRS depreciation for each asset in 2019 and what is Rexs allowable depreciation if it sold all of these assets in May of 2020 due to financial problems?
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