Question: In 2016, Richmond Corporation purchases and places into service a used machine. Richmond elects Sec. 179 expensing for $500,000 of its $600,000 cost. The machine

In 2016, Richmond Corporation purchases and places into service a used machine. Richmond elects Sec. 179 expensing for $500,000 of its $600,000 cost. The machine has a 7-year MACRS recovery period.

Assume the half-year convention applies.

a. What is Richmond's total depreciation deduction for the machine for each year of its recovery period?

b. How would your answer to Part a change if Richmond sells the machine for $220,000 on January 31, 2018? What is its gain or loss on the sale?

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a 514290 for 2016 24490 for 2017 17490 for 2018 12490 for 2019 8930 for 2020 8920 for 2021 8930 for 2022 and 4460 for 2023 Richmond can deduct for 201... View full answer

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