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Determine the Largest Possible MACRS Cost Recovery Deduction for 2013

Question 115

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Determine the largest possible MACRS cost recovery deduction for 2013 on the following assets,which were purchased for use in Greg's Accounting Services on July 1,2013.Greg elects out of bonus depreciation deduction.
 Asset  Cost  Office equipment $86,000 Computer and printers 40,000 Office building (exclusive of land) 150,000\begin{array}{lr}\text { Asset } & \text { Cost } \\\text { Office equipment } & \$ 86,000 \\\text { Computer and printers } & 40,000 \\\text { Office building (exclusive of land) } & 150,000\end{array}
a.Office equipment depreciation for 2013:MACRS recovery period__________Depreciable basis__________Depreciation__________
b.Computer and printer depreciation for 2013:MACRS recovery period__________Depreciable basis__________Depreciation__________
c.Office building depreciation for 2013:MACRS Class Life__________Depreciable basis__________Depreciation__________
d.Assume the office equipment is sold on December 2, 2015. Determine the cost recovery deduction for the year 2015.Depreciation:
e.Assume the building is sold on December 2, 2015. Determine the cost recovery deduction for the year 2015.Depreciation:

Correct Answer:

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a.7
$-0- = ($486,000 - $486,000).Total d...

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