On October 2,2019,Dave acquired and placed into service 5-year business equipment costing $70,000.No other acquisitions were made during the year.Dave does not apply Sec.179 expensing or bonus depreciation.The depreciation for this year is
A)$0.
B)$3,500.
C)$7,000.
D)$14,000.

Question

Quizplus · Accepted Answer

The equipment was placed in service on October 2, 2019, so it was in service for 89 days during the year (October 2 - December 31). The depreciation for the year is $70,000 / 5 years * 89 days / 365 days = $3,500.

On October 2,2019,Dave Acquired and Placed into Service 5-Year Business