Regent Corp uses the straight-line method. Assets purchased between the 1st and 15th of the month are depreciated for the entire month; assets purchased after the 15th of the month are treated as though they were acquired the following month. On July 8, 20X3, Regent Corp purchased equipment for $30,000 that it expects to last for 12 years; Regent Corp expects the equipment to have a residual value of $2,000. What is the 20X3 depreciation expense for the equipment?

Regent Corp uses the straight-line method. Assets purchased between the 1st and 15th of the month are depreciated for the entire month; assets purchased after the 15th of the month are treated as though they were acquired the following month. On July 8, 20X3, Regent Corp purchased equipment for $30,000 that it expects to last for 12 years; Regent Corp expects the equipment to have a residual value of $2,000. What is the 20X3 depreciation expense for the equipment?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges

Section: Chapter Questions

Problem 1BD

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