Hamlet acquires a 7-year class on November 23, 2017, for $100,000. Hamlet does n
ID: 2523632 • Letter: H
Question
Hamlet acquires a 7-year class on November 23, 2017, for $100,000. Hamlet does not elect immediate expensing under special 179. He does not claim any available additional first-year depreciation. Calculate Hamlet's cost recovery deductions for 2017 and 2018.
CAPTER 8 Depreciation, Cost Recovery, Amor MACRS Accelerated Depreciation for Personal Property Assuming Mid-Quarter Convention EXHIBIT 8.4 Placed in Service after December 31, 1986 (Partial Table*) For Prope 3-Year Second Quarter First Recovery Year Third Fourth Quarter 58.33 27.78 Quarter 25.00 50.00 Quarter 8.33 61.11 41.67 38.89 5-Year Second Quarter First Quarter Third Quarter 15.00 34.00 Fourth Recovery Year Quarter 5.00 38.00 35.0025.00 30.00 7-Year Second Quarter 26.00 Fourth Quarter Third Quarter 10.71 25.51 Recovery Year First Quarter 25.00 21.43 The fgures in this table are taken from the official tabl 3.57 17.85 23.47 es that appear in Rev.Proc. 87-57, 1987-2 C.B. 687. Because of their length, the complete tables are not presented.Explanation / Answer
Answer
The Cost Recovery Deduction for the year 2017:
= Cost of aseet *MACR %
= $100000*3.57
= $3570
The Cost Recovery Deduction for the year 2018:
= Cost of aseet *MACR %
= $100000*27.55%
= $27550
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.