On October 2,2017,Dave acquired and placed into service 5-year business equipment costing $70,000.No other acquisitions were made during the year.Dave does not use Sec.179 expensing,and the property does not qualify for bonus depreciation.The depreciation for this year,using the most accelerated method possible,is
A)$0.
B)$3,500.
C)$7,000.
D)$14,000.

Question

Quizplus · Accepted Answer

B)MACRS depreciation is $3,500 ($70,000 × .05).The equipment was placed in service during the 4th quarter and was the only personal property placed in service for the year.(Table 5 in Appendix C)

On October 2,2017,Dave Acquired and Placed into Service 5-Year Business