On June 20, 2018 Baker Corporation (a calendar-year taxpayer) acquired 5-year equipment costing $30,000 and on October 28, 2018, it acquired 7-year equipment costing $160,000. Baker did not claim Section 179 expensing or bonus depreciation and no other assets were acquired during the year. Baker's depreciation for 2018 is:

Question

Quizplus · Accepted Answer

The 5-year equipment uses the half-year convention and 200% declining balance method, resulting in $6,000 depreciation ($30,000 x 20%). The 7-year equipment also uses the half-year convention and 200% declining balance method, resulting in $7,212 depreciation ($160,000 x 4.5%). Total depreciation is $13,212.

On June 20, 2018 Baker Corporation (A Calendar-Year Taxpayer) Acquired