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SVETLANKA909090 [29]
4 years ago
11

An asset (not an automobile) put in service in June 2019 has a depreciable basis of $1,035,000, a recovery period of 5 years, an

d is the only asset placed in service during the year. Assuming bonus depreciation is used, a half-year convention, and the expensing election is made, what is the maximum amount of cost that can be deducted in 2019 (assume no income limitation)
Business
1 answer:
Irina18 [472]4 years ago
7 0

Answer:

The maximum deduction is $207,000.

Explanation:

As per MACRS depreciation table 5 years half year conversion depreciation rate for first year is 20% - 100%/5 = 20%

The maximum deduction is $1,035,000 * 20% = $207,000

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2 years ago
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