Raul purchased a new office computer system on February 15, 2015, at a cont of $

Question

Raul purchased a new office computer system on February 15, 2015, at a cont of $8,300. He would like to use the Depreciation System (GDS) straight-line method to depreciate the system and does not want to claim Using the half-year convention, compute his 2015 and 2016 depreciation borus depreciation. O His 2015 depreciation is $1.660, and his 2016 deprecuton is $2.650 O His 2015 depreciation is $1,453, and his 2016 depreciation is $1.800 O His 2015 depreciation is S830, and his 2016 depreciation is $1,000. O His 2015 depreciation is $691, and his 2016 depreciation is $1,384 Mark for follow up

Explanation / Answer

Ans. is c

his 2015 depreciation is $830, and his 2016 depreciation is $1,660.

Explanation: as per GDS SL method computer system falls is 5 years recovery period, and with half year convention only half year of first year depreciation is allowed instead of counting by month or quarter, like, a system put n service either February 2 or september 2 is assumed put to service in July 1 of that first year.

So Depreciation per year = 8300/5 = 1660, and for first year 1660/2 = 830

so for first year $830 and second year $1,660 is used.

his 2015 depreciation is $830, and his 2016 depreciation is $1,660.

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