Quanti co., a calendar-year taxpayer, purchased small tools for $5,000 on december 21, year 1, representing the company’s only purchase of tangible personal property that took place during year 1. assume quanti co. does not want to take §179 or bonus depreciation on the tools. on its year 1 tax return, how many months of macrs depreciation may quanti co. claim on the tools?
1. one month
2. none
3. one and a half month
4. six months.

On july 2, year 4, wynn, inc., purchased as a short-term investment a $1 million face-value kean co. 8% bond for $910,000 plus accrued interest to yield 10%. the bonds mature on january 1, year 11, and pay interest annually on january 1. on december 31, year 4, the bonds had a fair value of $945,000. on february 13, year 5, wynn sold the bonds for $920,000. in its december 31, year 4, balance sheet, what amount should wynn report for the bond if it is classified as an available-for-sale security?