At the beginning of 2007, AB Corporation (a calendar-year corporation) owned the following assets: OFFICE FURNITURE COMPUTER

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At the beginning of 2007, AB Corporation (a calendar-year corporation) owned the following assets:

OFFICE FURNITURE COMPUTER EQUIPMENT Date placed in service 11/15/04 4/15/05 Initial cost $20,000 $10,000 Accumulated depreciation $10,160 $5,200 Recovery period 7-year 5-year Averaging convention Mid-quarter Half-year On February 1, 2007, AB sold its office furniture. On March 15, 2007, AB sold its computer equipment. Compute AB Corporation’s depreciation deduction for 2007 for these two assets.

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Taxation For Decision Makers 2008

ISBN: 9780324654110

2nd Edition

Authors: Shirley Dennis-Escoffier, Karen A. Fortin

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