Your company just purchased office furniture (asset class XXXXXXXXXXfor $100,000 and placed it in...

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Your company just purchased office furniture (asset class XXXXXXXXXXfor $100,000 and placed it in service on August 13, 2007. The cost basis for the furniture is $100,000, and it will be depreciated with the GDS using half-year convention. The expected salvage (market) value of the furniture is $5,000 in 2015. Determine the recovery period for the furniture and its depreciation deductions over the recovery period.

David · Accepted Answer

The​ ​asset​ ​class​ ​of​ ​the​ ​furniture​ ​is​ ​given​ ​as​ ​00.11. 
The​ ​value​ ​of​ ​the​ ​GDS​ ​recovery​ ​period​ ​found​ ​from​ ​the​ ​Table​ ​for​ ​MACRS​ ​class​ ​lives​ ​and​ ​recovery 
periods​ ​is​ ​seven​ ​years​ ​.

Your company just purchased office furniture (asset class XXXXXXXXXXfor $100,000 and placed it in service on August 13, 2007. The cost basis for the furniture is $100,000, and it will be depreciated...

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