Cobly Company,a calendar year taxpayer,made only one asset purchase this year: machinery costing $1,932,500.The machinery is 7-year recovery property,and Cobly placed it in service on October 12.How many months of MACRS depreciation on the machinery is Cobly allowed this year?
A)Six months
B)Two and one-half months
C)One and one-half months
D)None of the above

Question

Quizplus · Accepted Answer

Under the MACRS half-year convention, assets placed in service in the fourth quarter are allowed one and one-half months of depreciation in the first year.

Cobly Company,a Calendar Year Taxpayer,made Only One Asset Purchase This