In May 2016,Cassie acquired a machine for $30,000 to use in her business.The machine is classified as 5-year property.Cassie does not expense the property under Sec.179,and the machine is not eligible for bonus depreciation.Cassie's depreciation on the machine this year is
A)$3,000.
B)$6,000.
C)$12,000.
D)$15,000.

Question

Quizplus · Accepted Answer

The machine is 5-year property, and using the MACRS depreciation method, the first-year depreciation rate for 5-year property is 20%. Therefore, $30,000 x 20% = $6,000.

In May 2016,Cassie Acquired a Machine for $30,000 to Use