In November 2019,Kendall purchases a computer for $4,000.She does not apply Sec.179 expensing or bonus depreciation.The computer is the only personal property which she places in service during the year.What is her total depreciation deduction for this year?
A)$200
B)$572
C)$800
D)$1,000

Question

Quizplus · Accepted Answer

The correct answer is A.The computer is 5-year property. The depreciation deduction for the first year is $4,000 x 20% = $800. However, since Kendall did not apply Sec.179 expensing or bonus depreciation, her total depreciation deduction for this year is $800 x 25% = $200.

In November 2019,Kendall Purchases a Computer for $4,000