Question
Section 7 - DEPRECIATION UNDER FEDERAL INCOME TAX DEPREC I ATION RULES Table 1: Half-Year Convention 200% Declining Balance Year 3 Year 5 Year 7
Section 7-DEPRECIATION UNDER FEDERAL INCOME TAX DEPRECIATION RULES
Table 1: Half-Year Convention
200% Declining Balance
Year | 3 Year | 5 Year | 7 Year |
|
1 | 33.33% | 20.00% | 14.29% |
|
2 | 44.45% | 32.00% | 24.49% |
|
3 | 14.81% | 19.20% | 17.49% |
|
4 | 7.41% | 11.52% | 12.49% |
|
5 |
| 11.52% | 8.93% |
|
|
|
|
|
|
6 |
| 5.76% | 8.92% |
|
7 |
|
| 8.93% |
|
8 |
|
| 4.46% |
|
9 |
|
|
|
|
10 |
|
|
|
|
|
|
|
|
|
11 |
|
|
|
|
12 |
|
|
|
|
13 |
|
|
|
|
14 |
|
|
|
|
15 |
|
|
|
|
AssetCostDate
Office Table$1,000January 1, 2012
Office Desk1,500September 29, 2012
File Cabinet2,000October 15, 2012
Computer6,000December 31, 2012
What is the maximum 2012 Section 179 deduction for these purchases?
a.$10,500
b.$2,500
c.$8,000
d.$0
2.On May 11, 2012, your calendar year firm pays$6,000 for a used computer server, its only asset purchase for the year, and estimates that the server will have a salvage value of $500. If no Section 179 deduction is taken, what is your firms maximum 2012 deduction for depreciation?
a. $2,000
b. $1,200
c. $1,100
d. $869
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