56. Anne LLC purchased computer equipment (5-year property) on August 29 with a basis of $30,000 and used the half-year convention. During the current year, which is the fourth year Anne LLC owned the property, the property was disposed of on January 15. Calculate the maximum depreciation expense: A. $432 B. $1,728 C. $1,874 D. $3,456 E. None of these

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24 September, 10:13

56. Anne LLC purchased computer equipment (5-year property) on August 29 with a basis of $30,000 and used the half-year convention. During the current year, which is the fourth year Anne LLC owned the property, the property was disposed of on January 15. Calculate the maximum depreciation expense: A. $432 B. $1,728 C. $1,874 D. $3,456 E. None of these

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Konner Gamble · Answer 1

B. $1,728

Explanation:

Data given in the question

Number of computer equipment purchased = $30,000

So, by considering the above information the maximum depreciation expense is

= Number of computer equipment purchased * depreciation rate under MACRS for 5 years property * half year basis

= $30,000 * 11.52% * 0.5

= $1,728

Refer to the MACRS table to find out the depreciation rate