Shannon purchases equipment classified as 3-year property on December 19,2076,at a cost of $100,000.Section 179 is not elected and Shannon does not use the straight-line method.Shannon purchased no other depreciable property in 2017.What is the amount of the MACRS depreciation deduction for 2017?

Question

Quizplus · Accepted Answer

For 3-year property, the MACRS depreciation rate for the first year is 33.33%. However, since the equipment was purchased in the last quarter of the year, the mid-quarter convention applies, reducing the first-year depreciation to 8.33% of $100,000, which is $8,330.

Shannon Purchases Equipment Classified as 3-Year Property on December 19,2076,at