A machine has a yearly depreciation of $2,400. What would be the depreciation for the first year if the purchased on July 14th. Assume that the company depreciates on a calendar year from Jan 1st to Dec 31st.
2007-01-25 13:49:47 · 2 answers · asked by jenny 1 in Business & Finance ➔ Other - Business & Finance
You'd get 6 months depreciation, or $1,200.
July - Dec = 6 months
You're allowed the entire month of July, even though the machine was placed in service during the month of July
BTW, you don't see S/L method used too much these days. I'm guessing this is a homework question??
2007-01-25 14:09:45 · answer #1 · answered by SuzeY 5 · 0⤊ 0⤋
Don't mean to be a smart *** you need to pay a good CPA or spend some time in the tax book.(about 1 kibilon pages of boring stuff) The CPA will look at all of your income and expences and tell you. One mistake on you will cost you way more than the CPA bill.
Ray.
2007-01-25 14:21:54 · answer #2 · answered by ray m 1 · 0⤊ 0⤋