Test- Intermediate Depreciation (2016) Section 6 Question 17 of 20. MACRS method

Question

Test- Intermediate Depreciation (2016) Section 6 Question 17 of 20. MACRS method with the half-year convention. He did not take a §179 expense deduction. In February 2015, he took the computer out of service by giving it to a recycler when he purchased a more powerful computer. What happens with depreciation on his first computer? O Myron continues to depreciate it as he normally would under MACRS in 2015 O Myron is allowed to take one-half of the normal 2015 depreciation. O Myron is allowed no depreciation on the computer for 2015 O Myron must recapture any depreciation he has taken on the computer Mark for follow up Back Save / Return Later Summary Next

Explanation / Answer

Ans- Myron is allowed to take on-half of the normal 2015 depreciation.

Explanation:

The mid year convention under MACRS provides that one half of the year of a acquisition is allowed regardless of when the property is placed in service during the year. One-half year's depreciation is allowable for the year of dispoaition.

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