Exam 26: Depreciation,cost Recovery,amortization,and Depletion

Paul bought a computer for $15,000 for business use on March 18,2017.This was his only purchase for that year.Paul used the most accelerated depreciation method available,but did not elect Sec.179 and the property did not qualify for bonus depreciation.Paul sells the machine in 2019.The depreciation on the computer for 2019 is

Section 179 allows taxpayers to immediately expense up to $1,020,000 for 2019 of the cost of real and personal property placed into service in a trade or business,subject to limitations.

If personal-use property is converted to trade or business use,the basis for depreciation is the lesser of adjusted basis or FMV on the date of conversion.

If a new luxury automobile is used 100% for business and placed in service in 2019,the maximum MACRS depreciation on the vehicle for 2019 is $18,100.

Off-the-shelf computer software that is purchased for use in the taxpayer's trade or business is amortized over 36 months,or it can be immediately expensed under a Sec.179 election.

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 apply Sec.179 immediate expensing or bonus depreciation.No other assets were purchased during the year.The depreciation for this year is

The straight-line method may be elected for depreciating tangible personal property placed in service after 1986.

If the business usage of listed property is less than or equal to 50% of its total usage,depreciation is calculated using the