_____ 8. The first year's depreciation for equipment acquired in October by a calendar-year business would be based on 1½ months if it was the only asset acquired that year.

Question

Quizplus · Accepted Answer

This is because the MACRS depreciation method assumes that assets are in service for a half-month in the first month that they are placed into service. Therefore, if the equipment was acquired in October, the first year's depreciation would be based on 1 1/2 months of use (November and December).

_____ 8 the First Year's Depreciation for Equipment Acquired in October