Tom purchased a 7-year asset for his business in February, 2020 for $4,500 and used...
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Accounting
Tom purchased a 7-year asset for his business in February, 2020 for $4,500 and used the half-year convention for MACRS. He did not deduct any bonus depreciation. He sold the asset in April, 2023. How much depreciation will Tom deduct in 2023?
TABLE 1 MACRS Half-Year Convention
Depreciation Rate for Recovery Period
Year 5-year 7-year
1 20.00% 14.29%
2 32.00 24.49
3 19.20 17.49
4 11.52 12.49
5 11.52 8.93
6 5.76 8.92
7 8.93
8 4.46
Multiple choice question. $214 $281 $562 $187
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