Solar Systems purchased two assets during the current year. On August 10, Solar Systems placed...
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Accounting
Solar Systems purchased two assets during the current year. On August 10, Solar Systems placed in service computer equipment (five year property) with a basis of $20,000 and on November 18 placed in service machinery (seven-year property) with a basis of $10,000. Calculate the maximum depreciation expense, ignoring Sect. 179 and bonus depreciation). Use your book's table 1.
Type of asset
Date in service
Recovery period
Cost basis
Depreciation rate
Depreciation expense
Adjusted tax basis
Year
Computer equipment
8/10/Y1
5 year
20,000
Y1
Machinery
11/18/Y1
7 year
10,000
Y1
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