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Homework answers / question archive / Yodle Corp bought a production machine on January 1, 2018 for $31,250
Yodle Corp bought a production machine on January 1, 2018 for $31,250. The company did not elect Section 179 expensing and elected out of claiming bonus depreciation in 2018, and is depreciating the machine using the MACRS accelerated depreciation tables for 5-year property. What is the 2020 depreciation (Year 3) deduction for the machine?
a) $6,250
b) $10,000
c) $12,500
d) $6,000
e) None of these choices are correct.
Computation of the 2020 depreciation deduction for machine:-
MACRS rate for 3 year = 19.20%
Depreciation = Cost * MACR rate
= $31,250 * 19.20%
= $6,000
Hence, the correct option is d) $6,000
