Richland Company purchased an asset in 2009 for $50,000 and sold it in 2012. The asset was 7-year recovery property. Richland's 2012 MACRS depreciation on the asset was $6,245.

Question

Quizplus · Accepted Answer

The asset was sold in 2012, so Richland Company would not claim any MACRS depreciation for that year. Depreciation is only claimed for the period the asset is in use by the company.

Richland Company Purchased an Asset in 2009 for $50,000 and Sold