Essco Inc, a Calendar Year Taxpayer, Made Two Asset Purchases This

Multiple Choice

Essco Inc., a calendar year taxpayer, made two asset purchases this year. The first purchase was a machine costing $836,000, and the second purchase was equipment costing $494,000. Both assets are 7-year recovery property. Essco placed the machine in service on July 21 and the equipment in service on October 14. How many months of MACRS depreciation is Essco allowed for each asset?  

A)  Essco is allowed six months depreciation for the machine and 1.5 months of depreciation for the equipment.
B)  Essco is allowed 7.5 months depreciation for the machine and 1.5 months of depreciation for the equipment.
C)  Essco is allowed 1.5 months of depreciation for both the machine and the equipment.
D)  Essco is allowed six months of depreciation for both the machine and the equipment.