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Solar Systems purchased two assets during the current year. On August 10, Solar Systems placed in service computer equipment (five year property) with a basis
Solar Systems purchased two assets during the current year. On August 10, Solar Systems placed in service computer equipment (five year property) with a basis of $20,000 and on November 18 placed in service machinery (seven-year property) with a basis of $10,000. Calculate the maximum depreciation expense, ignoring Sect. 179 and bonus depreciation). Use your book's table 1.
Type of asset | Date in service | Recovery period | Cost basis | Depreciation rate | Depreciation expense | Adjusted tax basis | Year |
Computer equipment | 8/10/Y1 | 5 year | 20,000 | Y1 | |||
Machinery | 11/18/Y1 | 7 year | 10,000 | Y1 |
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