ABC Corp bought a production machine on January 1,2012 for $30,000.The company elected out of Section 179 expensing and elected out of claiming bonus depreciation in 2012,and is depreciating the machine using the MACRS accelerated depreciation tables for 5-year property.What is the 2013 depreciation year 2)deduction for the machine?

Question

Quizplus · Accepted Answer

Under MACRS for 5-year property, the depreciation rate for the second year is 32%. Therefore, the depreciation deduction for 2013 is 32% of $30,000, which is $9,600.

ABC Corp Bought a Production Machine on January 1,2012 for $30,000.The