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25 July, 04:18

Ethan's Eggroll House, a calendar year corporation, purchased a new computer and printer in January for $1,500. In February, the business purchased a new oven for $1,200. No other assets were purchased during the year. How much depreciation will be taken on these items in the current year if the taxpayer does NOT elect to use Section 179 and does NOT use bonus depreciation? A. $300 computer; $171 ovenB. $525 computer; $300 ovenC. $375 computer; $300 ovenD. $300 computer; $240 ovenE. $525 computer; $420 ovenF. $214 computer; $171 oven

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  1. 25 July, 06:44
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    Answer: The answer is D $300 computer, $240 oven

    Explanation:

    According to IRS tables on the calculation of depreciation on computer and oven, it is estimated that an asset such as computer will have a depreciation useful life of 5 years

    Therefore since computer cost and printer = $1,500, useful life = 5 year

    Cost : useful life

    = 1,500 : 5

    = $300

    For oven since the cost = $1,200, useful life = 5years

    Cost : useful life

    = 1,200 : 5

    = $240
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