Question
Suppose a computer software developer for a certain company purchased a computer system for $55,000 on April 27, 2017. The computer system is used for
Suppose a computer software developer for a certain company purchased a computer system for $55,000 on April 27, 2017. The computer system is used for business 100% of the time. The accountant for the company elected to take a $30,000 Section 179 deduction, and the asset qualified for a special depreciation allowance.
Required
(a) What was the basis for depreciation (in $) of the computer system?
(b) What was the amount (in $) of the first year's depreciation using MACRS?
Step by Step Solution
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To calculate the basis for depreciation and the first years depreciation using MACRS we need to cons...
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South-Western Federal Taxation 2018 Comprehensive
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
41st Edition
1337386006, 978-1337386005
