Question

Problem 10-55 (LO 10-2; LO 10-3)

[The following information applies to the questions displayed below.]

Harris Corp. is a technology start-up and is in its second year of operations. The company didn’t purchase any assets this year but purchased the following assets in the prior year:

	Placed in
Asset	Service		Basis
Office equipment	August 14	$	10,000
Manufacturing equipment	April 15		68,000
Computer system	June 1		16,000
Total		$	94,000

Harris did not know depreciation was tax deductible until it hired an accountant this year and didn’t claim any depreciation deduction in its first year of operation. (Use MACRS Table 1 and Table 2.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.)

Problem 10-55 Part a

a. What is the maximum amount of depreciation deduction Harris Corp. can deduct in its second year of operation?

    

Answer 1

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