Reid Acquired Two Assets This Year: Computer Equipment (5-Year Property)

question 76

Short Answer

Reid acquired two assets this year: computer equipment (5-year property) acquired on August 6th with a basis of $500,000 and machinery (7-year property) on November 9th with a basis of $500,000. Assume that Reid has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179 expensing (but not bonus expensing). Assume the 2013 §179 limits are extended to 2014.

---

Definitions:

The Oz Principle

A leadership principle that emphasizes accountability, ownership, and responsibility among individuals and teams to achieve desired results.

Interpersonal Communication

The process by which people exchange information, feelings, and meaning through verbal and non-verbal messages in face-to-face contexts.

Media Richness

The capacity of a communication medium to effectively convey information and promote understanding through immediate feedback, multiple cues, and personal focus.

ZIP Drive

A removable floppy disk storage system that was widely used in the late 1990s and early 2000s for data storage and transfer.