Bonnie Jo used two assets during the current year. The first was computer equipm
ID: 2524702 • Letter: B
Question
Bonnie Jo used two assets during the current year. The first was computer equipment with an original basis of $15,000, currently in the second year of depreciation, and under the half-year convention. This asset was disposed of on October 1st of the current year. The second was furniture with an original basis of $24,000 placed in service during the first quarter, currently in the fourth year of depreciation, and under the mid-quarter convention. What is Bonnie Jo's depreciation expense for the current year, rounded to the nearest whole number? (Please show work. Thank you!)
Explanation / Answer
Ans - The depreciation expense for current year is $5023
The depreciation expense is for the current year is $5023
Calculations are
15000*.32*1/2 years = 2400
24000*.1093 = 2623
Total = 2400+2623 = $5023