Suppose a computer software developer for a certain company purchased a computer system for $75,000 on April 27, 2017. The computer system is used for business 100% of the time. The accountant for the company elected to take a $30,000 Section 179 deduction, and the asset qualified for a special depreciation allowance. (a) What was the basis for depreciation (in $) of the computer system? (See Table 17-4.) $ (b) What was the amount (in $) of the first year's depreciation using MACRS? $ (Table 17-4) Certain Qualified Asset Placed into Service Special Allowance September 11, 2001–May 5, 2003 30% May 6, 2003–January 1, 2005 50% December 31, 2007–September 27, 2017 50% September 28, 2017–December 31, 2022 100%
Suppose a computer software developer for a certain company purchased a computer system for $75,000 on April 27, 2017. The computer system is used for business 100% of the time. The accountant for the company elected to take a $30,000 Section 179 deduction, and the asset qualified for a special depreciation allowance. (a) What was the basis for depreciation (in $) of the computer system? (See Table 17-4.) $ (b) What was the amount (in $) of the first year's depreciation using MACRS? $ (Table 17-4) Certain Qualified Asset Placed into Service Special Allowance September 11, 2001–May 5, 2003 30% May 6, 2003–January 1, 2005 50% December 31, 2007–September 27, 2017 50% September 28, 2017–December 31, 2022 100%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Suppose a computer software developer for a certain company purchased a computer system for $75,000 on April 27, 2017. The computer system is used for business 100% of the time. The accountant for the company elected to take a $30,000 Section 179 deduction, and the asset qualified for a special
(a) What was the basis for depreciation (in $) of the computer system? (See Table 17-4.)
$
(b) What was the amount (in $) of the first year's depreciation using MACRS?
$
(Table 17-4)
Certain Qualified
Asset Placed into Service Special Allowance
September 11, 2001–May 5, 2003 30%
May 6, 2003–January 1, 2005 50%
December 31, 2007–September 27, 2017 50%
September 28, 2017–December 31, 2022 100%
Asset Placed into Service Special Allowance
September 11, 2001–May 5, 2003 30%
May 6, 2003–January 1, 2005 50%
December 31, 2007–September 27, 2017 50%
September 28, 2017–December 31, 2022 100%
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