Problem $8-11($Algorithmic$)$

Modified Accelerated Cost Recovery System $($MACRS$)$ and Bonus Depreciation, Listed Property $($LO $8\mathrm{.}2,8\mathrm{.}4)$

On February $2,2023,$ Keiko purchases a personal computer. The computer cost $$5,560.$ Keiko uses the computer $85$ percent of the time in her accounting business, and the remaining $15$ percent of the time for various personal uses. Calculate Keiko's maximum depreciation deduction for $2023$ for the computer, assuming half$-$year convention and she does not use bonus depreciation or make the election to expense.

Click here to access the depreciation table.

If required, round your answer to nearest dollar.

$ $q,$

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Under MACRS, taxpayers calculate the depreciation of an asset using a table which contains a percentage rate for each year of the property's recovery period. The yearly rate is applied to the cost of the asset. The cost of the property to which the rate is applied is not reduced for prior years' depreciation.

Regardless of the method of depreciation used by the taxpayer, accelerated or straight$-$line, or the election to expense, the amount of depreciation expense that may be claimed is limited to business use.