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In 2020, Oscar Co. purchased a piece of business-use equipment for $1,000,000. The equipment has a...

In 2020, Oscar Co. purchased a piece of business-use equipment for $1,000,000. The equipment has a 7-year MACRS GDS recovery period and is depreciated under MACRSGDS (no SL election). The equipment was placed in service on September 10, 2020. This was the only asset that Oscar Co. placed in service in 2020. Oscar Co. did not electSection 179 deductions. Oscar Co. did not elect out of Section 168(k) bonus depreciation. What is Oscar Co.'s total depreciation deduction for 2020?

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Answer #1

MACRS GDS

Property class: 7 year

Date Placed in service: 10th Sept. 2020

Depreciation Rate : .1429

Cost : $1,000,000

Sec.179 deduction : NIL

Sec. 168(k) bonus depreciation: NIL

Total Depreciation deduction for 2020: $1,000,000 * 0.1429 = $142,900

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