Problem 7-13 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS), Listed Property (LO 7.4, 7.6)

On February 2, 2016, Alexandra purchases a personal computer for her home. The computer cost $5,080. Alexandra uses the computer 80 percent of the time in her accounting business, and the remaining 20 percent of the time for various personal uses. Calculate Alexandra's maximum depreciation deduction for 2016 for the computer, assuming half-year convention and she does not make the election to expense or take bonus depreciation.

Click here to access the depreciation table.

If required, round your answer to nearest dollar.

TABLE 7.2 Accelerated Depreciation for Personal Property Assuming Half-Year Convention (For Property Placed in Service after December 31,1986) 7-Year (20090 DB) 20-Year (150% DB) 3.750 7.219 6.677 3-Year 5-Year 10-Year (200% DB) 10.00 18.00 14.40 11.52 9.22 7.37 15-Year (15090 DB) 5.00 9.50 8.55 7.70 6.93 6.23 Recovery (20090 DB) 33.33 44.45 14.81 7.41 Year (20090 DB) 20.00 32.00 19.20 11.52* 11.52 5.76 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 4 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 6.55 * 5.90* 6.55 6.56 6.55 3.28 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 10 12 13 15 16 17 18 19 20 21 TABLE 7.2 Accelerated Depreciation for Personal Property Assuming Half-Year Convention (For Property Placed in Service after December 31,1986) 7-Year (20090 DB) 20-Year (150% DB) 3.750 7.219 6.677 3-Year 5-Year 10-Year (200% DB) 10.00 18.00 14.40 11.52 9.22 7.37 15-Year (15090 DB) 5.00 9.50 8.55 7.70 6.93 6.23 Recovery (20090 DB) 33.33 44.45 14.81 7.41 Year (20090 DB) 20.00 32.00 19.20 11.52* 11.52 5.76 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 4 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 6.55 * 5.90* 6.55 6.56 6.55 3.28 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 10 12 13 15 16 17 18 19 20 21