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Mike purchased depreciable assets for his new business on 1/10/2017 New computer equipment (5year property) 8,500...

Mike purchased depreciable assets for his new business on 1/10/2017

New computer equipment (5year property) 8,500

New office furniture and fixtures (7year property) 19,000

Delivery warehouse, including 10% land 85,000

He wants to elect section 179 on the computer. He does not elect out of bonus depreciation

Using form 4562, calculate total depreciation?

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Answer #1
For compute equipment he can claim total $8500 as section 179 expense as it is within $510000 limitation
For office equipment mid qtr convention is used
Deliver warehouse mid year convention on (85000-8500) 76500
Basis Sec 179 Basis left Dep rate Dep exp
Comuter equipment $8,500 8500 $0
Office furniture & fixture 19000 0 $19,000 3.57% $678.30
Delivery warehouse 76500 0 $76,500 0.54% $409.28
Deduction 179 8500
$9,588
Total depreciation $9,588
rounded off $9,587.58
If any doubt please comment
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