Cobly Company, a Calendar Year Taxpayer, Made Only One Asset

question 113

Multiple Choice

Cobly Company, a calendar year taxpayer, made only one asset purchase this year: machinery costing $1,932,500. The machinery is 7-year recovery property, and Cobly placed it in service on October 12. How many months of MACRS depreciation on the machinery is Cobly allowed? 

• A) Six months
• B) Two and one-half months
• C) One and one-half months
• D) None of the above

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Confirmation Bias

The inclination to view new information as support for one's pre-existing opinions or hypotheses.

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