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Reid Acquired Two Assets in 2017: Computer Equipment (5-Year Property)

Question 41

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Reid acquired two assets in 2017: computer equipment (5-year property) acquired on August 6thwith a basis of $510,000 and machinery (7-year property) on November 9th with a basis of$510,000. Assume that Reid has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179 expensing (but not bonus expensing). (Use MACRS Table 1) Reid acquired two assets in 2017: computer equipment (5-year property) acquired on August 6thwith a basis of $510,000 and machinery (7-year property) on November 9th with a basis of$510,000. Assume that Reid has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179 expensing (but not bonus expensing). (Use MACRS Table 1)

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$612,000
The $510,000 §179 expense shoul...

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