Compute regular depreciation for the following qualified assets. Ignore bonus depreciation and section 179. a.) Business equipment...

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Answer:
1	Business equipment purchased in February for $40,000 which has salvage value of $4,000.

	Purchase price	40000
	period of depreciation	11 months
	rate of depreciation	40%

	Purchase price	40000
	less: salvage value	4000
	depreciable value	36000

	depreciation(3600040%11/12)	13200

2	Business car purchased in May for 22,000 which has a salvage value of $3,000.

	Purchase price	22000
	period of depreciation	8 months
	rate of depreciation	15%

	Purchase price	22000
	less: salvage value	3000
	depreciable value	19000

	depreciation(1900015%8/12)	1900

3	Business equipment purchased in May for $150,000 has a salvage value of $15,000.

	Purchase price	150000
	period of depreciation	8 months
	rate of depreciation	40%

	Purchase price	150000
	less: salvage value	15000
	depreciable value	135000

	*depreciation(13500040%8/12)*	36000

4	Business car purchased in April for $42,000 with a salvage value of $5,000.

	Purchase price	42000
	period of depreciation	9 months
	rate of depreciation	15%

	Purchase price	42000
	less: salvage value	5000
	depreciable value	37000

	*depreciation(3700015%9/12)*	4162.5

5	Compute depreciation for residential real estate purchased in January for $390,000 with a salvage value of $50,000.

	Purchase price	390000
	period of depreciation	12 months
	rate of depreciation

	depreciation exp for the year	14181.82

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