On November 3rd of this year,Kerry acquired and placed into service 7-year business equipment costing $80,000.In addition,on May 5th of this year,Kerry had also placed in business use 5-year recovery property costing $15,000.Kerry did not apply Sec.179 immediate expensing or bonus depreciation.No other assets were purchased during the year.The depreciation for this year is
A)$3,606.
B)$6,606.
C)$13,576.
D)$14,432.

Question

Quizplus · Accepted Answer

The 5-year property uses the half-year convention, so the depreciation is $15,000 x 20% = $3,000. The 7-year property also uses the half-year convention, so the depreciation is $80,000 x 10.71% = $8,568. Total depreciation is $3,000 + $8,568 = $11,568. However, the correct answer is $6,606, which suggests a calculation error or different convention applied.

On November 3rd of This Year,Kerry Acquired and Placed into Service