Multiple Choice
Durna Inc., a calendar year taxpayer, made two asset purchases this year. The first purchase was a machine costing $874,000, and the second purchase was equipment costing $660,000. Both assets are 7-year recovery property. Durna placed the machine in service on March 27 and the equipment in service on December 14. How many months of MACRS depreciation is Durna allowed for each asset?
A) Durna is allowed six months depreciation for the machine and 1.5 months of depreciation for the equipment.
B) Durna is allowed 10.5 months depreciation for the machine and 1.5 months of depreciation for the equipment.
C) Durna is allowed 1.5 months of depreciation for both the machine and the equipment.
D) Durna is allowed six months of depreciation for both the machine and the equipment.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Which of the following statements about the
Q47: The capitalized cost of tangible leasehold improvements
Q49: W&F Company, a calendar year taxpayer, purchased
Q50: Which of the following intangible assets is
Q53: Song Company, a calendar year taxpayer, purchased
Q55: Which of the following expenditures must be
Q65: Dorian,a calendar year corporation,purchased $1,568,000 of equipment
Q103: Mann Inc., a calendar year taxpayer, incurred
Q106: KJD Inc., a calendar year corporation, purchased
Q110: D&R Company,a calendar year corporation,purchased $1,116,000 of