Question: A file server and peripherals (MACRS-GDS 5-year property) are purchased in December by a calendar- year taxpayer for $8,000. The server will be used for

A file server and peripherals (MACRS-GDS 5-year property) are purchased in

A file server and peripherals (MACRS-GDS 5-year property) are purchased in December by a calendar- year taxpayer for $8,000. The server will be used for 6 years and be worth $200 at that time. Calculate the depreciation deduction during years 1, 3, and 6. Use straight-line depreciation. Use declining balance depreciation, with a rate that ensures the book value equals the salvage value. Use double declining balance depreciation. Use double declining balance depreciation, switching to straight line depreciation. Use MACRS-GDS allowances. 1. 2. 3. 4. 5

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