Compute Regular MACRS Depreciation for the Following Qualified Assets Purchased

question 95

Essay

Compute regular MACRS depreciation for the following qualified assets purchased during 2012 (Ignore bonus depreciation and Section 179 deduction):
(a.) Office equipment purchased in 2012 for $25,000 which has a salvage value of $5,000.
(b.) Office building purchased in October 2012 for $90,000 which has a salvage value of $10,000.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, making them partial owners of the company.

Legal Persons

Entities, such as corporations or governmental bodies, that are recognized by law as having rights and responsibilities similar to natural persons.

Corporate Power

The legal authority and inherent capacities that a corporation possesses to conduct business, enter into contracts, and own assets.

Board of Directors

A group of individuals elected to represent shareholders and make decisions on major company issues, including strategy, governance, and overall direction.