Problem 8-9 Modified Accelerated Cost Recovery System (MACRS), Listed Property (LO 8.2, 8.4)

On February 2, 2020, Alexandra purchases a personal computer. The computer cost $2,200. Alexandra uses the computer 75 percent of the time in her accounting business, and the remaining 25 percent of the time for various personal uses. Calculate Alexandra's maximum depreciation deduction for 2020 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. $___________

Problem 8-9 (Algorithmic) Modified Accelerated Cost Recovery System (MACRS), Listed Property (LO 8.2, 8.4)

On February 2, 2020, Alexandra purchases a personal computer. The computer cost $4,760. Alexandra 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 Alexandra's maximum depreciation deduction for 2020 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. $___________

HERE IS THE INFORMATION USED TO SOLVE THE PROBLEMS:

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TABLE 8.2 Recovery Year 1 2 3 20-Year (150% DB) 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4 Accelerated Depreciation for Personal Property Assuming Half-Year Convention (For Property Placed in Service after December 31, 1986) 3-Year 5-Year 7-Year 10-Year 15-Year (200% DB) (200% DB) (200% DB) (200% DB) (150% DB) 33.33 20.00 14.29 10.00 5.00 44.45 32.00 24.49 18.00 9.50 14.81 % 19.20 17.49 14.40 8.55 7.41 11.52 12.49 11.52 7.70 11.52 8.93 9.22 6.93 5.76 8.92 7.37 6.23 8.93 6.55 5.90 * 4.46 6.55 5.90 6.56 5.91 6.55 5.90 3.28 5.91 5.90 5.91 5.90 5.91 2.95 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 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 20 21 *Switch to straight-line depreciation