Question

Problem 8-36 (b) (LO. 2) Starnell acquired the following new assets during 2019: Date Asset Cost January 4 June 2 October 31 Computers and peripheral equipment Truck (not subject to any depreciation limitations) Office equipment $10,000 22,000 40,000 Starnell does not elect immediate expensing under $ 179 but elects additional first-year depreciation for the computers. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. What MACRS convention applies to the assets? Mid-quarter b. What class of property is each asset for MACRS? c. The cost recovery for the current year is: Computers and peripheral equipment: 10,000 Truck: Office equipment:

Answer 1

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