In May 2019,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 or bonus depreciation.Cassie's depreciation on the machine for 2019 is
A)$3,000.
B)$6,000.
C)$12,000.
D)$15,000.

Question

Quizplus · Accepted Answer

Cassie uses the MACRS 200% declining balance method for 5-year property. In the first year, the depreciation rate is 20%. Therefore, $30,000 x 20% = $6,000.

In May 2019,Cassie Acquired a Machine for $30,000 to Use