In April, the current year, Emma acquired a machine for $60,000 for use in her business. The machine is classified as 7-year property. Emma does not expense the asset under Sec. 179 or bonus depreciation. Emma's depreciation on the machine in the current year isA) $30,000B) $60,000C) $ 6,428D), $8,574

Question

Business

Bradley Ferrell

6 January, 18:10

In April, the current year, Emma acquired a machine for $60,000 for use in her business. The machine is classified as 7-year property. Emma does not expense the asset under Sec. 179 or bonus depreciation. Emma's depreciation on the machine in the current year isA) $30,000B) $60,000C) $ 6,428D), $8,574

+1

Answers (1)

Know the Answer?

Conrad Ayers · Answer 1

D), $8,574

Explanation:

The computation of the depreciation on the machine is shown below:

= Acquired value of the machine * depreciation rate for the first year

= $60,000 * 14.29%

= $8,574

Simply we multiplied the acquired value of the machine with the depreciation rate for first-year so that the correct amount of depreciation can come