On November 3rd of this year,Kerry acquired and placed into service 7-year business equipment costing $80,000.In addition,on May 5th of this year,Kerry had also placed in business use 5-year recovery property costing $15,000.Kerry did not elect Sec.179 immediate expensing,and the assets are not eligible for bonus depreciation.No other assets were purchased during the year.The depreciation for this year is
A)$3,606.
B)$6,606.
C)$13,576.
D)$14,432.

Question

Quizplus · Accepted Answer

B)Equipment placed in service in last 3 months of year: $80,000/$95,000 = 84% of all equipment; therefore,the mid-quarter convention must be used on all personal property placed in service during the year.
 11ea7cb8_54df_2cb8_928c_9f24338a4c9d_TB1258_00

On November 3rd of This Year,Kerry Acquired and Placed into Service