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21 March, 04:22

An asset (not an automobile) placed in service in June 2018 has a depreciable basis of $35,000 and a recovery period of 5 years. Assuming bonus depreciation is used, a half-year convention, and no expensing election, what is the maximum amount of cost that can be deducted in 2018?

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  1. 21 March, 05:36
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    The Cost that can be deducted will be $3,500

    Explanation:

    Bonus Depreciation=$35,000*50%=$17,500

    Now cost deductible in 2018 will be=$17,500/5=$3,500

    Currently 50% bonus depreciation being deducted on assets as per new rulings.
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