Question

Tasha LLC purchased furniture (seven-year property) years ago for $20,000 and used the half-year convention to depreciate it. Tasha did not take §179 or bonus depreciation in the year it acquired the furniture. During the current year, which is the fourth year Tasha LLC owned the property, the property was disposed of on December 15. Calculate the maximum depreciation expense. (Use MA

Answer 1

the maximum depreciation expense for year 4 = $2,498

Step-by-step explanation:

depreciation per year using MACRS 7 year class, half year convention

year depreciation % purchase cost total depreciation

1 14.29% $20,000 $2,858

2 24.49% $20,000 $4,898

3 17.49% $20,000 $3,498

4 12.49% $20,000 $2,498

5 8.93% $20,000 $1,786

6 8.92% $20,000 $1,784

7 8.93% $20,000 $1,786

8 4.46% $20,000 $892