Answer:
The right solution is "600000".
Explanation:
The given values are:
Cost of office furniture,
= $100,000
Cost of the computer system,
= $500,000
- The changed MACRS enables a company to reduce the mortgage balance of such deteriorating properties over time.
- Throughout the very first years, MACRS permits quicker depreciation although subsequently slows down depriving. This seems to be fantastic for corporations from a tax point of view.
Now,
The cost recovery deduction will be:
=
On substituting the values, we get
=
=