NINJA MCQ – Simulation #21

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  • February 26, 2015 at 2:20 am #192335
    Anonymous
    Inactive

    NINJA Question –

    In simulation #21, there are two types of tangible personal property bought for a hair salon:

    (1) Furniture & Equipment ($12K)

    (2) PCs and peripheral equipment ($14K)

    The answer points explains that the 179 deduction is applied to Furniture & Equipment instead of the MACRS depreciation; whereas, MACRS depreciation is applied to PCs and peripheral equipment instead of the 179 deduction.

    Can someone explain why (1) & (2) are treated differently? I assumed that you could apply the 179 deduction to both.

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