In April, the current year, Emma acquired a machine for $60,000 for use in her business. The machine is classified as 7-year property. Emma does not expense the asset under Sec. 179 or bonus depreciation. Emma's depreciation on the machine in the current year isA) $30,000B) $60,000C) $ 6,428D), $8,574

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Business

Mia Fitzpatrick

21 August, 11:03

In April, the current year, Emma acquired a machine for $60,000 for use in her business. The machine is classified as 7-year property. Emma does not expense the asset under Sec. 179 or bonus depreciation. Emma's depreciation on the machine in the current year isA) $30,000B) $60,000C) $ 6,428D), $8,574

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Lyla Carter · Answer 1

D), $8,574

Explanation:

The computation of the depreciation on the machine is shown below:

= Acquired value of the machine * depreciation rate for the first year

= $60,000 * 14.29%

= $8,574

Simply we multiplied the acquired value of the machine with the depreciation rate for first-year so that the correct amount of depreciation can come