Ethan's Eggroll House, a calendar year corporation, purchased a new computer and printer in January for...
Ethan's Eggroll House, a calendar year corporation, purchased a new computer and printer in January for $1,500. In February, the business purchased a new oven for $1,200. No other assets were purchased during the year. How much depreciation will be taken on these items in the current year if the taxpayer does NOT elect to use Section 179 and does NOT use bonus depreciation?
$300 computer; $171 oven
$525 computer; $300 oven
$375 computer; $300 oven
$300 computer; $240 oven
$525 computer; $420 oven
$214 computer; $171 oven
Homework Answers
Life of computer is 5 years and hence rate used is 20%
and life of oven is 7 years and hence rate used is 14.29%
Depreciation
Computer = $1500 x 20% = $300
Oven = $1200 x 14.29% = $171
Answer is a. $300 computer; $171 oven
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