Herelt, Incorporated, a calendar year taxpayer, purchased equipment for $383,600 and placed it in service on...

  

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Herelt, Incorporated, a calendar year taxpayer, purchased equipment for $383,600 and placed it in service on April 1, 2023. The equipment was seven-year recovery property, and Herelt used the half-year convention to compute MACRS depreciation. Use Table 2. Required: a. Compute Herelt's MACRS depreciation with respect to the equipment for 2023 and 2024. b. Compute Herelt's adjusted basis in the equipment on December 31, 2024. c. Compute Herelt's MACRS depreciation for 2025 if it disposes of the equipment on February 9, 2025. TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) Recovery Period 7-Year Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 3-Year 33.33% 44.45 14.81 7.41 5-Year 20.00% 32.00 19.20 11.52 11.52 5.76 10-Year Depreciation Rate 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 10.00% 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 15-Year 5.00% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 20-Year 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 Herelt, Incorporated, a calendar year taxpayer, purchased equipment for $383,600 and placed it in service on April 1, 2023. The equipment was seven-year recovery property, and Herelt used the half-year convention to compute MACRS depreciation. Use Table 2. Required: a. Compute Herelt's MACRS depreciation with respect to the equipment for 2023 and 2024. b. Compute Herelt's adjusted basis in the equipment on December 31, 2024. c. Compute Herelt's MACRS depreciation for 2025 if it disposes of the equipment on February 9, 2025. TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) Recovery Period 7-Year Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 3-Year 33.33% 44.45 14.81 7.41 5-Year 20.00% 32.00 19.20 11.52 11.52 5.76 10-Year Depreciation Rate 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 10.00% 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 15-Year 5.00% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 20-Year 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231

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ANSWER To compute Herelt Incorporateds MACRS depreciation for the equipment we need to follow these ... View the full answer