Richland Company purchased an asset in 2013 for $50,000 and sold it in 2016. The asset was 7-year recovery property. Richland's 2016 MACRS depreciation on the asset was $6,245.

Question

Quizplus · Accepted Answer

The asset was sold in 2016, so Richland Company would not claim any 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 2013 for $50,000 and Sold