Compute herelts adjusted basis in the equipment

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Herelt Inc., a calendar year taxpayer, purchased equipment for $383,600 and placed it in service on April 1, 2018. The equipment was seven-year recovery property, and Herelt used the half year convention to compute MACRS depreciation.

Question a. Compute Herelt's MACRS depreciation with respect to the equipment for 2018 and 2019.

Question b. Compute Herelt's adjusted basis in the equipment on December 31, 2019.

Question c. Compute Herelt's MACRS depreciation for 2020 if it disposes of the equipment on February 9.2020.

Reference no: EM132484630

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