81. Teddy purchased only one asset during the current year. It placed in service machinery (7-year property)
on October 1st with a basis of $76,500. Calculate the maximum depreciation expense, rounded to the
nearest whole number (ignoring section 179 and bonus expensing).
82. Amit purchased two assets during the current year. Amit placed in service computer equipment (5-
year property) on April 16th with a basis of $5,000 and furniture (7-year property) on September 9th
with a basis of $20,000. Calculate the maximum depreciation expense (ignoring section 179 and bonus
expensing):
83. Yasmin purchased two assets during the current year. Yasmin placed in service computer equipment (5-
year property) on May 26th with a basis of $10,000 and machinery (7-year property) on December 9th
with a basis of $10,000. Calculate the maximum depreciation expense (ignoring section 179 and bonus
expensing):
84. Bonnie Jo used two assets during the current year. The first was computer equipment with an original
basis of $15,000, currently in the second year of depreciation, and under the half-year convention. This
asset was disposed of on October 1st of the current year. The second was furniture with an original basis
of $24,000 placed in service during the first quarter, currently in the fourth year of depreciation, and
under the mid-quarter convention. What is Bonnie Jo’s depreciation expense for the current year, rounded
to the nearest whole number?
85. Kristine sold two assets on March 20th of the current year. The first was machinery with an original basis
of $51,000, currently in the fourth year of depreciation, and under the half-year convention. The second
was furniture with an original basis of $16,000 placed in service during the fourth quarter, currently in the
third year of depreciation, and under the mid-quarter convention. What is Kristine’s depreciation expense
for the current year, rounded to the nearest whole number?
86. Timothy purchased a new computer for his consulting practice on October 15th of the current year. The
basis of the computer was $4,000. During the Thanksgiving holiday, he decided the computer didn’t meet
his business needs and gave it to his college-aged son in another state. The computer was never used for
business purposes again. Timothy had $50,000 of taxable income before depreciation. What is Timothy’s
total cost recovery expense with respect to the computer during the current year?
87. During August of the prior year, Julio purchased an apartment building that he used as a rental property.
The basis was $1,400,000. Calculate the maximum depreciation expense during the current year?
88. During April of the current year, Ronen purchased a warehouse that he used for business purposes. The
basis was $1,600,000. Calculate the maximum depreciation expense during the current year?
89. An office building was purchased on December 9th several years ago for $2,500,000. The purchase price
was allocated as follows: building $1,900,000, landscaping $100,000, and land $500,000. During the
current year, the 10th year, the building was sold on March 10th. Calculate the maximum depreciation
expense for the real property during the current year, rounded to the nearest whole number?
90. Boxer LLC has acquired various types of assets recently. Below is a list of assets acquired during 2010
and 2011:
Boxer did not elect section 179 expense or potential bonus depreciation in 2010, but would like to elect
section 179 expense for 2011 (assume that taxable income is sufficient). Calculate Boxer’s maximum
depreciation expense for 2011, rounded to the nearest whole number (ignore bonus depreciation for
2011).
