Ask Question
22 April, 18:10

Michael purchased a new office computer system on January 23, 2018, at a cost of $3,791. He does not want to claim bonus depreciation. Using the half-year convention, the amount Michael may claim for depreciation in 2018 is

+1
Answers (1)
  1. 22 April, 18:38
    0
    Michael May claimim $758.2 for depreciation in 2018

    Step-by-step explanation:

    Given

    Costs of System = $3,791

    As a general rule, items that cost more than $2,500 must be depreciated.

    A computer is categorised as an office equipment with a 5 year property.

    Considering half heat convention, Depreciation Rate = 20%

    Expected Amount is then calculated as Depreciation Rate * Cost

    Expected Amount = $3,791 * 20%

    Expected Amount = $3,791 * 0.2

    Expected Amount = $758.2

    Hence, Michael May claim $758.2 as depreciation
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Michael purchased a new office computer system on January 23, 2018, at a cost of $3,791. He does not want to claim bonus depreciation. ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers