An asset other than a passenger automobile is placed in service on May 15,2013 and has a depreciable basis of $32,000.The asset is in the 7-year recovery class.What is the maximum depreciation deduction that may be claimed for 2013,excluding the election to expense and bonus depreciation?

Question

Quizplus · Accepted Answer

For a 7-year property placed in service in May, the half-year convention applies. The first-year depreciation rate for 7-year property is 14.29%. Therefore, $32,000 * 14.29% = $4,573.

An Asset Other Than a Passenger Automobile Is Placed in Service