The first and last years of MACRS depreciation deductions for a 7-year asset costing $20,000 using the half-year convention are:
A)$4,000 and $1,152
B)$2,858 and $892
C)$2,000 and $576
D)$1,428 and $1,428

Question

Quizplus · Accepted Answer

Under MACRS with a 7-year property using the half-year convention, the first-year depreciation is 14.29% and the last year is 8.93% of the asset cost. Calculating these percentages for a $20,000 asset gives $2,858 for the first year and $892 for the last year.

The First and Last Years of MACRS Depreciation Deductions for a 7-Year