Billie purchased and installed a new safe in her qualified in-home office on Jun

Question

Billie purchased and installed a new safe in her qualified in-home office on June 1, 2015. She paid $4,250 for the safe. She chooses to use the Alternative Straight-Line method of depreciation and does not want depreciation. Using the half-year convention, compute her 2015 depreciation. to claim bonus $213 o $303 O $425 Mark for follow up Question 6 of 20. Blake purchased a new office computer system on F ebruary 15, 2015, at a cost of $7,500. If Blake wants to maximize 15 depreciation deduction without claiming the section 179 expense deduction, what should he do? -O Use regular MACRS to depreciate the computer system O use ADS to depreciate the computer system. ° Expense the computer system as a supply item instead of an asset O claim bonus depreciation of 50%. Mark for follow up estion 7 of 20. in September 2015, Randy purchased and placed in service an office building costing $675,000, including $112,000 for the land. Compute his 2015 depreciation. 17 $5,213 $5,422 O$5,973 Mark for follow up Question 8 of 20. Using the half-year convention, compute the total first-year MACRS deduction for a new office desk purchased and placed in service on May 1, 2015 The deskcost $750 andthe 50%bonus depreciation will be claimed - 7SoX. 1429 Io 375 x .SU 37S 48& 7SoX-50-395

Explanation / Answer

1) Cost of Safe $4,250.00 useful life (General Depreciation System) 7 Years 1 year Depreciation = $4250/7 $607.14 Using Half year convention Depreciation for 2015 = $607.14 x 6/12 $303.57 Option 2 is correct $303.00 2) Computer equipment are classified as five-year property. Using Regular MACRS depreciation. First year 20% depreciation would be deducted. Option 1 is Correct 3) Cost of Building = $675,000 - $112,000 563000 Useful life 39 years 2015 Depreciation = $563000 x .749% 4216.87 Table 7: Nonresidential Property--39 Years Month placed in service 9 Option 1 is correct 4217 4) Cost of desk $750.00 Less: bonus dep. 50% $375.00 $375.00 MACRS Depreciation half year convention x 14.29% Depreciation $53.59 Total Depreciation = $375 + $53.59 $428.59 Option 3 is correct $429.00

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