In September of the current year, Eric purchased a new computer for use in his business. The cost of the computer was $4,300, while freight and setup charges totaled $600. It is his only purchase for the year. Assume that Eric opts out of immediate expensing provisions. What is the cost recovery deduction using the Modified Accelerated Cost Recovery System (MACRS)?

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SOLUTION To determine the cost recovery deduction using the Modified Accelerated Cost Recovery Syste... View the full answer