Euclid acquires a 7-year class asset on May 9, 2018, for $162,400. Euclid does not elect immediate expensing under § 179. He does not claim any available additional first-year depreciation.
Click here to access the depreciation table to use for this problem.
If required, round your answers to the nearest dollar.
Euclid's cost recovery deduction is $____________ for 2018 and $_____________ for 2019.
Solution :
Calculation of Euclid's cost of recovery deduction for 2018 and 2019 -
cost of recovery deduction for 2018 = Asset value * Depreciation rate for the 1st year
= $1,62,400 * 14.29%(by using MACR table)
= $23,206.96
Therefore , the cost of recovery of deduction for 2018 is $23,207(Approx) .
cost of recovery deduction for 2019 = Asset value * Depreciation rate for the 2nd year
= $1,62,400 * 24.49%(by using MACR table)
= $39,771.76
Therefore , the cost of recovery of deduction for 2019 is $39,772 (Approx) .
Euclid's cost recovery deduction is $ 23,207 for 2018 and $ 39,772 for 2019.
Get Answers For Free
Most questions answered within 1 hours.