Sam acquires the following 5-year class property in 2018: Asset Date of Acquisition Cost X April...
Sam acquires the following 5-year class property in
2018:
| Asset | Date of Acquisition | Cost |
| X | April 10 | $ 60,000 |
| Y | July 25 | $ 55,000 |
| Z | December 1 | $ 110,000 |
| $225,000 |
What is Sam's MACRS depreciation for 2018, assuming no Section 179 or bonus depreciation?
Homework Answers
Since question isn't fully clear on the IRS convention, therefore, calculations are based on Mid-quarter convention with 200% declining balance method.
Depreciation on Property X = $60,000 * 25% = $15,000
Depreciation on Property Y = $55,000 * 15% = $8,250
Depreciation on Property Z = $110,000 * 0% = $0.
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Sam acquires the following 5-year class property in
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