Question

Susie bought a used computer to use in her business which she operates as a proprietor....

Susie bought a used computer to use in her business which she operates as a proprietor. she paid 2400 for the computer and started using it on July 3. Susie used the computer 60% for business and 40% personally during the first year. Determine Susies depreciation expense during the first year assuming her business incurred a loss that year. Use the appropiate MACRS table in your textbook.

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Answer #1

Depreciation Using MARCS- Allows depreciation over stated recovery period that is generally shorted than the asset's value estimated useful life also the recovery period is identical for new/ used property and salvage value is ignored.

Under MACRS for computers General depreciation system, recovery period is 5 Yrs, 200% class

Idebtifying the applicable MACRS factor using table

=$2,400*60%

=$1440

=$1440*11.52%

=$165.88

Depreciation Calculation

=$1440*2/5*1/2

=$288.

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