Alice purchased office furniture on September 20,2013,for $100,000.On October 10,2013,she purchased business computers for $80,000.Alice placed all of the assets in service on January 15,2014.Alice did not elect to expense any of the assets under § 179,did not elect straightline cost recovery,and did not take additional firstyear depreciation (if available).Determine the cost recovery deduction for the business assets for 2014.

Question

Alice purchased office furniture on September 20,2013,for $100,000.On October 10,2013,she purchased business computers for $80,000.Alice placed all of the assets in service on January 15,2014.Alice did not elect to expense any of the assets under § 179,did not elect straight­line cost recovery,and did not take additional first­year depreciation (if available).Determine the cost recovery deduction for the business assets for 2014.

Quizplus · Accepted Answer

The half-year convention applies.
Regular MACRS
Furniture (seven-year property)
$100,000 × .1429 $14,290
Computers (five-year property)
$80,000 × .20 16,000
Total cost recovery $30,290

Alice Purchased Office Furniture on September 20,2013,for $100,000