Ask Question
7 April, 21:28

Alice purchased office furniture on September 20, 2016, for $100,000. On October 10, 2016, she purchased business computers for $80,000. Alice placed all of the assets in service on January 15, 2017. Alice did not elect to expense any of the assets under § 179, did not elect straight-line cost recovery, and did not take additional first-year depreciation. Determine the cost recovery deduction for the business assets for 2017.

a. $6,426

b. $14,710

c. $25,722

d. $30,290

e. None of the above

+1
Answers (1)
  1. 7 April, 22:49
    0
    d. $30,290

    Explanation:

    The half-year convention applies.

    Regular MACRS

    Furniture (seven-year property) = $100,000 * 0.1429

    = $14,290

    Computers (five-year property) = $80,000 * 0.20

    = $16,000

    Total cost recovery = $14,290 + $16,000

    = $30,290

    Therefore, The cost recovery deduction for the business assets for 2017 is $30,290.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Alice purchased office furniture on September 20, 2016, for $100,000. On October 10, 2016, she purchased business computers for $80,000. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers