In April 2019,Emma acquired a machine for $60,000 for use in her business.The machine is classified as 7-year property.Emma does not expense the asset under Sec.179 or bonus depreciation.Emma's depreciation on the machine for 2019 is
A)$30,000.
B)$60,000.
C)$6,428.
D)$8,574.

Question

Quizplus · Accepted Answer

The machine is 7-year property, and using the MACRS depreciation method, the first-year depreciation rate for 7-year property is 14.29%. Therefore, $60,000 * 14.29% = $8,574.

In April 2019,Emma Acquired a Machine for $60,000 for Use