[Stgeorge]

Hi all I thought MACRS depreciation 200% declining. So if you have a 7 year property it would be 1/7 *2 for the depreciation the first year?

Here is a MCQ I got in Ninja and just wanted to make sure since according to this mcq you do not times the 1/7 depreciation by two.

Sally Markey, who owns a heavy construction company, decided to spend some of her $2,000,000 2015 profit on a heavy-duty diesel truck costing $111,000 for her business. In order to lower her income taxes for the year, she decided to take the maximum Section 179 deduction plus the MACRS depreciation for 7-year property. The ceiling for Section 179 in 2015 is $25,000. No other capital assets were purchased during 2015. What is the total deduction for the truck in 2015?

A.

$25,000

Correct B.

$37,289

C.

$15,862

D.

$40,862

Sally Markey took the largest Section 179 deduction available in 2015, $25,000. This reduced the truck tax basis to $86,000 ($111,000 − $25,000). Depreciation available for the first year of MACRS is $12,289 ($86,000 × 0.1429). Total expense is $37,289 for the year ($25,000 + $12,289)

FAR 81
AUD 65, 84 (Used Ninja MCQ which I say contributed to my huge increase in score I love you Jeff)
REG 87 (CPA excel Wiley Self Study Book, Ninja 10 point combo)
BEC 86! I Must Pass or I lose my FAR Credit, Pray for me(Becker, Wiley, WTB, Ninja MCQ, Ninja Notes)

DONE!!!!!!

Using : Wiley CPA Exam Review Textbook, Wiley TB, Ninja Notes, Ninja MCQ