On April 12,2018,Suzanne bought a computer for $20,000 for business use.This was the only purchase for that year.Suzanne used the most accelerated depreciation method available but did not apply Sec.179 or bonus depreciation.Suzanne sells the machine in 2019.The depreciation on the computer for 2019 is
A)$2,000.
B)$3,200.
C)$4,000.
D)$6,400.

Question

Quizplus · Accepted Answer

Suzanne used the most accelerated depreciation method available, which is the MACRS 5-year property method for computers. Under MACRS, the depreciation rate for the second year is 32%, so $20,000 x 32% = $6,400. However, since the computer was sold in 2019, only half of the second year's depreciation is allowed, which is $6,400 / 2 = $3,200.

On April 12,2018,Suzanne Bought a Computer for $20,000 for Business