On May 11, 2012, your calendar year firm pays $6,000 for a used computer server, its only
Question:
On May 11, 2012, your calendar year firm pays $6,000 for a used computer server, its only asset purchase for the year, and estimates that the server will have a salvage value of $500. If no Section 179 deduction is taken, what is your firm’s maximum 2012 deduction for depreciation?
a. $2,000
b. $1,200
c. $1,100
d. $869
3. Depreciation of property other than real property begins in the middle of the quarter in which it is placed in service when more than:
a.25% of the total cost of all depreciable property placed in service during the year occurs during the fourth quarter.
b.40% of the total cost of the property less any Section 179 deduction placed in service during the year occurs during the fourth quarter.
c.40% of the total cost of all depreciable property placed in service during the year occurs during the fourth quarter.
d.25% of the total cost of Section 179 property placed in service during the year occurs during the fourth quarter.
