finance

On June 26, 2004, Elaine purchased and placed into service a new computer system costing $8,000. The computer system was used 80 percent for business and 20 percent for personal use in both 2004 and 2005. Elaine claimed only regular MACRS depreciation. In 2006, the computer system was used 45 percent for business and 55 percent for personal use.
Compute the depreciation deduction for the computer system in 2006 and the cost recovery recapture.
Assume that in 2004, Elaine had instead expensed under Section 179 the cost of the computer system. Compute the cost recovery recapture in 2006.

  1. 👍 0
  2. 👎 0
  3. 👁 151

Respond to this Question

First Name

Your Response

Similar Questions

  1. finance

    On June 26, 2004, Elaine purchased and placed into service a new computer system costing $8,000. The computer system was used 80 percent for business and 20 percent for personal use in both 2004 and 2005. Elaine claimed only

    asked by Elizabeth on July 2, 2011
  2. Math

    The records of a computer retail store show that out of the 25 customers who purchased a desktop computer last month, all but 8 also purchased a service plan that extends the warranty for an extra year. Out of 100 the customers

    asked by Traci on October 25, 2016
  3. microeconomics

    Sam Johnson started a small machine shop, Machines, Inc., in his garage and incorporated it in March of 2002 as a calendar-year corporation. At that time, he began using his personal computer and tools solely for the business as

    asked by Elizabeth on July 3, 2011
  4. Statistics

    The records of a computer retail store show that out of the 100 customers who purchased a desktop computer last month, 69 also purchased a service plan that extends the warranty for an extra year. Out of the 25 customers who

    asked by Mary Ann on January 5, 2015
  5. Financial Accounting

    Hi, Sorry for this format, it's kind of hard to read, but I'm supposed to journalize these transactions and I can't get June 30th and Dec. 31st to work out correctly. I would greatly appreciate any help. Thanks! Jan. 1 Retired a

    asked by Jen on November 5, 2007
  6. Accounting

    Redmon Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of June. June 1 Purchased $8,100 of merchandise

    asked by Rhonda on September 9, 2008
  7. accounts

    1. On January 1, 2004 PEN PENNY received a Utility Bill from BEC for $10,000, the bill was due on February 28, 2004. (a) Show the entries on January 1, 2004 and February 28, 2004. 2. On March 1, 2004 PEN PENNY company borrowed

    asked by jimmy on November 25, 2008
  8. Managerial Accounting

    Rocky Mountain Outfitters manufactures cowboy boots. Information related to a recent production period is as follows: Estimated manufacturing overhead, 2004 $240,000 Estimated machine hours, 2004 12,000 Direct labor cost,

    asked by Anonymous on September 17, 2010
  9. Accounting

    I need to enter the following into Journal Enteries a) Borrowed $12,000 cash on a short-term note payable dates march 1, 2011 b) Purchased land for future buildings site, paid cash, $9,000. c) Earned $160,000 in Service Revenue

    asked by Leisel on September 24, 2009
  10. Accounting Help Needed

    The balance in the office supplies account on June 1 was $5,200, supplies purchased during June were $2,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry is cant figure

    asked by Anonymous on November 30, 2007

More Similar Questions