Question

Hamlet acquires a 7-year dass asset on November 23, 2019, for $113,400 (the only asset acquired during the year). Hamlet does not elect immediate expensing under 5 179. He does not daim any available additional first year depreciation. This is Hamlet's only tangible personal property acquisition for the year. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Calculate Hamlet's cost recovery deduction for 2019 and 2020. 2019: $ 16,205 X 2020: $ 277,772 X Feedback Check My Work Under the modified accelerated cost recovery system (MACRS), the cost of an asset is recovered over a predetermined period that generally is shorter than the useful life of the asset or the period that the asset is used to produce income. The MACRS rules were designed to encourage Investment, improve productivity, and simplify the pertinent law and its administration.

Answer 1

Cost Recovery Deduction for 2019	4,048
Cost Recovery Deduction for 2020	31,242

Please find below table useful to compute desired results: -

1 MACRS 7 year Table 2 For Year 1 =3.57/100 3 For Year 2 =27.55/100 4 Asset Acquired 113400 5 Cost Recovery Deduction for 2019 1=B4*B2 6 Cost Recovery Deduction for 2020 =B4* B3

End results would be as follows: -

2 3 4 5 6 MACRS 7 year Table For Year 1 3.57% For Year 2 27.55% Asset Acquired 113,400.00 Cost Recovery Deduction for 2019 4,048.38 Cost Recovery Deduction for 2020 | 31,241.70 |