Richland Company purchased an asset in 2016 for $50,000 and sold it in 2019.The asset was 7-year recovery property.Richland's 2019 MACRS depreciation on the asset was $6,245.

Question

Quizplus · Accepted Answer

The asset was sold in 2019, so Richland Company would not claim MACRS depreciation for that year. Depreciation is only applicable while the asset is owned and used by the company.

Richland Company Purchased an Asset in 2016 for $50,000 and Sold