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Barbara's Bakery purchased three new 7-year assets last year. She chose NOT to use Section 179...

Barbara's Bakery purchased three new 7-year assets last year. She chose NOT to use Section 179 immediate expensing or take bonus depreciation. The furnishings were purchased for $15,000 in April, the equipment for $6,000 in July, and the appliances for $40,000 in November. Using the appropriate MACRS depreciation tables in the Appendix, what amount of depreciation expense is allowable in the current (second) year of ownership?

$16,806

$14,939

$16,163

$16,072

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Answer #1

Answer : $14939

Details:

property placed in service in 1st year:
Amount $
2nd qter 15000
3rd qter 6000
4th qter 40000
Total furnishing at beginning of 2nd Year 61000
Half Year depreciation rate in 2nd Year 24.49%
Depreciation in Second Year 14939
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