The books of seal company a calendar year taxpayer had

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The books of Seal Company, a calendar year taxpayer, had assets and related information as of December 31, 2012. Seals policy is to record depreciation on December 31 by way of a journal entry. Seal also takes advantage of any early write-offs of its purchased assets allowed by law. Based on the information given calculate Seals maximum depreciation deduction for 2012. The office equipment purchased is new and Seals taxable income for the year is $1,000,000. Bonus depreciation in effect for 2012 is 50%. Seal purchased office equipment of $240,000 on February 1, 2012.The expensing election for 2012 is $500,000 and the threshold is $2,000,000.

Reference no: EM13577363

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