What is the amount of cost recovery

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Alex placed in service two assets in 2015: equipment (7 year property) in August 2015 which cost $1,400,000, and computer equipment (5 year property) in November 2015 which cost $2,000,000. These were his only asset acquisitions this year. Alex wants to take the maximum depreciation deduction this year.

1. What is the amount of cost recovery (depreciation) he can take in 2015 on the Equipment?

2. What is the amount of cost recovery (depreciation) he can take in 2016 on the Equipment?

3. What is the amount of cost recovery (depreciation) he can take in 2015 on the Computer Equipment?

4. What is the amount of cost recovery (depreciation) he can take in 2016 on the Computer Equipment?

Reference no: EM131331067

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