Question

An asset (not an automobile) put in service in June 2019 has a depreciable basis of $30,000 and a recovery period of 5 years. Assuming half-year convention, no bonus depreciation, and no election to expense is made, what is the maximum amount of cost that can be deducted in 2019?

Answer 1

$6,000

Step-by-step explanation:

depreciable basis $30,000

recovery period 5 years

using the MACRS table for half year convention, 200% declining balance, the depreciation expense per year:

year depreciation % depreciation expense

1 20% $6,000

2 32% $9,600

3 19.20% $5,760

4 11.52% $3,456

5 11.52% $3,456

6 5.76% $1,728