Question: During 2015, Rita acquired and placed in service two assets for use in her business, as follows: Asset A: Placed in service in February
During 2015, Rita acquired and placed in service two assets for use in her business, as follows:
• Asset A: Placed in service in February at a cost of $65,000 with a 7-year MACRS recovery period.
• Asset B: Placed in service in November at a cost of $30,000 with a 7-year MACRS recovery period.
Rita elects to expense $25,000 under Sec. 179. Compute Rita’s total depreciation deduction for 2015 under each of the following assumptions:
a. Rita allocates the entire $25,000 Sec. 179 expense to Asset A.
b. Rita allocates the entire $25,000 Sec. 179 expense to Asset B.
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a If Rita allocates the entire 25000 Sec 179 expense to Asset A the midquarter convention applies as ... View full answer
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