Compute the total depreciation expense for Gallagher

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Question - Sage Creek Inc. began operations on 1/1/19. The company purchased $10,000 worth of equipment on August 1, and $50,000 worth of equipment on November 1. All of the equipment is 5 year property. Assuming that the company elects out of bonus depreciation, and does not elect Section 179 treatment.

(a) Compute the total depreciation expense for Gallagher for 2019.

(b) Compute the total depreciation expense on all equipment for Gallagher for 2021 if the $10,000 piece of equipment is sold on December 1st.

Reference no: EM132432283

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