Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in november 2016, sue purchased a computer to use

In November 2016, Sue purchased a computer to use exclusively in her home business. She...

80.2K

Verified Solution

Question

Accounting

In November 2016, Sue purchased a computer to use exclusively in her home business. She depreciated it using the regular MACRS method with the mid-quarter convention. She had not taken a 179 expense deduction. In June 2017, she discovered she needed a better computer, so she gave her old computer to a local recycler, and purchased a new one. What happens with the depreciation on the first computer?

Depreciation is computed for the year and then she is allowed 87.5% of that amount on her 2017 return.

Sue can claim the depreciation for the entire year.

Depreciation is computed for the year, and then Sue is allowed 37.5% of that amount on her 2017 return.

She is able to claim 50% of the year's depreciation since she used the computer for six months of the year.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students