Assume a calendar year taxpayer, using MACRS, elects optional straight- line depreciation over the shortest possible recovery period for the following assets. Compute 2012 depreciation for each of the assets listed. (Ignore bonus depreciation and Section 179 deduction.)
(a.) Business equipment purchased in 2012 for $45,000 with a salvage value of $5,000.
(b.) Oﬃce furniture purchased in January 2012 for $100,000 with an estimated salvage value of $5,000.

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The Answer of Assume a calendar year taxpayer, using MACRS, elects optional straight- line depreciation over the shortest possible recovery period for the following assets. Compute 2012 depreciation for each of the assets listed. (Ignore bonus depreciation and Section 179 deduction.)
(a.) Business equipment purchased in 2012 for $45,000 with a salvage value of $5,000.
(b.) Oﬃce furniture purchased in January 2012 for $100,000 with an estimated salvage value of $5,000.

Assume a Calendar Year Taxpayer, Using MACRS, Elects Optional Straight-