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Business, 12.12.2020 16:50 destinyd10189

ADS and MACRS. (Obj. 1) Peter purchased the following new properties to use in his business. Equipment: Acquired in April, 2007 at a cost of $72,000
Furniture: Acquired in March, 2010 at a cost of $84,000
Computer: Acquired in July, 2013 at a cost of $10,000
a. Compute Peter’s 2014 depreciation expense. Peter has never elected Section 179, nor has
he ever elected out of taking bonus depreciation. Peter uses ADS straight-line method
with a ten-year life to depreciate the equipment. He uses regular (accelerated) MACRS
to depreciation the furniture and computer. The half-year convention applies to all three
properties.
b. Same as in Part a., except that the mid-quarter convention applied to all personal property
placed in service in 2010.
c. Same as in Part a. except that Peter purchased each of these properties in 2014. Compute
depreciation for each of these properties for 2014 using the maximum depreciation
allowed for each property without electing Section 179.

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ADS and MACRS. (Obj. 1) Peter purchased the following new properties to use in his business. Equipm...
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