Engineering Economy 16th Edition by William Sullivan ,Elin Wicks, Koelling,

Exercise 10

Your company just purchased office furniture (asset class 00.11) for $100,000 and placed it in service on August 13, 2007. The cost basis for the furniture is $100,000, and it will be depreciated with the GDS using half-year convention. The expected salvage (market) value of the furniture is $5,000 in 2015. Determine the recovery period for the furniture and its depreciation deductions over the recovery period. Problem 1
Problem 1
Explain how the cost basis of depreciable property is determined. (Problem)
Problem
What conditions must a property satisfy to be considered depreciable